GMO and Soft Space forge capital alliance to transform Japan’s cashless payment sector

GMO Financial Gate has entered into a capital alliance with Soft Space, the world’s leading fintech-as-a-service (FaaS) company. This investment from GMO-FG precedes Soft Space’s planned Series C funding round, aiming to transform Japanese society into a cashless one.

This collaboration highlights a mutual commitment to promote the adoption of contactless and cashless payments by leveraging the unique strengths of both entities. GMO-FG is poised to introduce Soft Space’s innovative, patented payment solutions to its existing markets and bank partners. Conversely, Soft Space is set to benefit from GMO’s vast client network, potentially exploring new opportunities in transportation, hospitality, and the extensive food and beverage (F&B) sector, which currently operates predominantly using cash. As Japan is a key destination for tourists worldwide, the convenience of using cashless payments is expected to encourage tourists to spend more by eliminating the inconvenience of carrying cash.

The capital alliance has already marked its first achievement with the live deployment of stera tap, Japan’s first MPoC-certified SoftPOS solution, demonstrating the successful synergy between technological innovation and GMO-FG’s payment network. stera is integral to Sumitomo Mitsui Card Company(“SMCC”) ‘s strategy to lead the charge in Japan’s cashless payment revolution.

Kentaro Sugiyama, CEO of GMO-FG, reflected on the partnership’s history, saying, “Since our collaboration began in 2018, Soft Space and GMO-FG have cultivated a strong relationship by integrating Soft Space’s SoftPOS services with GMO-FG’s payment network, with an initial focus on the transit segment. Soft Space’s solutions are designed for swift market adoption, and we’re proud to have launched stera tap as Japan’s first MPoC-certified SoftPOS solution under the SMCC initiative. This capital alliance is a step towards deepening our collaboration and expanding Japan’s face-to-face cashless payment market.”

As the volume of domestic cashless payments (valued at approximately US$650 billion as of 2020) continues to rise in Japan, this partnership is a critical step towards realizing a fully cashless society. By simplifying cashless transactions and combining the strengths of both Soft Space and GMO-FG, this collaboration is poised to spearhead a financial revolution, enhancing the daily lives of millions across Japan.

Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on Medium or on LinkedIn. Our global Finance & FinTech Podcast, “eXponential Finance” is also available through its own LinkedIn newsletter, or via our Podlink.

Should you live in Tokyo, or just pass through, please also join our Tokyo FinTech Meetup. In any case, our YouTube channel and LinkedIn page are there for you as well.