Introducing Machitoku Pay: A New Cashless Point Refund Service for Local Businesses

In an innovative collaboration, Felica Pocket Marketing (FPM) and Netstars have unveiled a new cashless point refund service called Machitoku Pay. This service is specifically designed to address the challenges faced by local governments when it comes to preventing point leakage to external areas. By integrating FPM's newly-developed regional currency package with Netstars' StarPay multi-cashless payment solution, Machitoku Pay offers a unique combination of national cashless payment services while promoting local consumption within municipalities.

The Need for Change in Cashless Point Refund Services

Many municipalities across Japan have implemented cashless point refund projects, but a common issue is the inability to prevent the points funded by local taxes from being spent outside their designated regions. This has led to concerns regarding the effectiveness of these projects and the overall benefit to local communities. Machitoku Pay aims to rectify this by providing a cashless service that exclusively rewards users with local points that can only be spent in participating local businesses, thereby bolstering the local economy.

Background and Motivation Behind Machitoku Pay

The inception of Machitoku Pay stems from the growing popularity of cashless services in Japan and the increasing need for localized economic measures that ensure funds circulate within communities. FPM has always prioritized supporting regional economies through various platforms for local currencies and digital gift vouchers. Their engagement with numerous municipalities highlighted a pivotal need: to devise a system that prevents tax-funded cashless points from leaving the locality. In response to this demand, FPM developed Machitoku Pay, integrating it with Netstars' StarPay, which allows users to choose from a variety of well-established cashless services while ensuring that their spending remains within the community.

Features of Machitoku Pay

Machitoku Pay is uniquely positioned as a package that amalgamates the convenience of major cashless payment solutions with the principles of local currency that promotes regional consumption. Aside from being user-friendly, it helps in creating a circulation of local currency restricted to regional merchants. This synergy is crucial as it maintains the utility of familiar payment services while empowering local businesses. It also accommodates municipalities' needs by potentially integrating digital gift voucher functionalities, thereby allowing for flexible implementations.

Cashless Payment Solutions Supported

Currently, Machitoku Pay collaborates with three major cashless services: AEON Pay, au PAY, and Merpay (in alphabetical order), with future plans to include d払い® and Rakuten Pay as well. The app streamlines transactions by allowing users to scan a shared QR code at point-of-sale systems, select the payment method, and complete their transaction seamlessly. Additionally, users can leverage local point rewards in conjunction with points from various cashless payment apps, amplifying consumer enthusiasm.

Benefits of Implementing Machitoku Pay

- Maximizing Cashless Point Refund Effectiveness: Localized cash back points can only be utilized at participating regional stores, ensuring that the financial investment stays within the community.
- Enhanced Citizen Satisfaction: An expanded selection of payment options makes participation easier for users. Depending on the criteria set by cashless service providers, users may benefit from combined local and cashless service point rewards, boosting their spending motivation.
- Sustained App Utilization: Machitoku Pay can serve as a continual local digital platform, promoting usage for both premium vouchers and regional currency applications.
- Ease of Adoption: Implementing Machitoku Pay is straightforward, with a rapid roll-out period, making it attractive for municipalities.
- Community Engagement: The app also harbors features that support community-building initiatives, such as event notifications, surveys, and coupon distribution.

Recommendations for Municipalities

Machitoku Pay is ideal for municipality officials who are:

- Worried about the leakage of cashless point refunds to outside regions.
- Seeking effective economic stimulation strategies without developing their own local currency initiatives.
- Considering ongoing cashless projects, including premium gift voucher programs and local currency solutions.
- Looking to transition from paper vouchers to digital alternatives.

The program is set to begin its proof of concept (PoC) in Hiroshima City’s Rakurakuen Shopping Street in October 2025, with aspirations to onboard 30 municipalities within its first year. The PLANS include not just immediate cashless initiatives like point refunds and vouchers but also long-term goals of integrating various community-affiliated services such as health, eco-initiatives, and administrative processes into a single citizen app.

FPM and Netstars are committed to creating a sustainable, enriched community network through Machitoku Pay, connecting administrations, businesses, stores, and residents alike with the philosophy of **