SmartPay launches digital customer finance service in Japan

The new service allows SmartPay’s customers to pay for their online instalment purchases straight from their bank account. By using Japan’s Open Banking system, the SmartPay Bank Direct feature offers convenience and security during the online payment process.

The company has launched its Buy Now, Pay Later (BNPL) service back in November of 2021, which combined an all-in-one payment experience, as well as an interest fee payment solution for their clients. The feature allowed Japanese customers who have credit cards to checkout in a fast and secure way, without any additional fees.

Currently, Japan has one of the highest credit card penetration rates in Asia, with over 60% of transactions being completed in cash.

Following the launch of this new app, SmartPay focuses on financial inclusion, as well as offering the clients a platform where they can choose the paperless payment method. This has helped the growth of the digital BNPL economy, as this method helps merchants manage their cash flow in a more secure way.

SmartPay Bank Direct offers a specific consumer psychographics list, which includes a tech savvy population, high disposable income, smartphone and internet access, increased consumption, and high rates of tech adaptation, as the economy is undergoing a digital transformation.

SmartPay’s strategy and expansion

SmartPay aims to provide their customers with reliable financial products and secure payment solutions, supporting the transformation of a cash-based society into a digital one. The next stage is focused on targeting middle and high-income clients and providing them with safe, fast, and convenient financial solutions. These customers are low-risk and high-value, with average transaction value of USD 200, who want to avoid a bad credit rating and non-payment on debit obligations. Their non-performing loan (NPL) must be less than 1%, as the monthly repeat rate of these users has already reached approximately 20%.

The high-income customers want to control their monthly budget and to extend the monthly cash flow without paying any additional fee. They want the company that provides the services to build a strategy that follows their needs when it comes to borrowing money. SmartPay Bank Direct was designed to give these clients a new money management strategy that can be used for their demands.

SmartPay will focus on Japan market first, as well as Saudi Arabia and UAE markets. In the near future, the company will move towards Singapore, South Korea, Taiwan, and other markets in MENA and Southeast Asia.