#Japan #Tokyo #Cashless #YTGATE #EMV

YTGATE's Groundbreaking Analysis of Card Payment Approval Rates

YTGATE Co., Ltd., headquartered in Chuo, Tokyo, has made significant strides in the world of cashless transactions. The company, led by its CEO Yutaro Takahashi, partnered with Link Corp. and Cacco, Inc. to publish the "Cashless Security Report 2025." This annual report dives deep into the analysis of card payment approval rates, particularly focusing on the effects caused by the implementation of EMV 3-D Secure. For the first time, the report quantifies shifts in approval rates post-implementation, presenting a comprehensive view of both fraud risks and the loss of legitimate transactions.

Overview of the Cashless Security Report 2025

The report serves as a statistical account of credit card data breaches and identifies trends in online fraud. YTGATE conducted a meticulous investigation into the shifts in card payment approval rates linked to the new EMV 3-D Secure measures. The findings spotlight causes behind the declines in these approval rates, offering thorough insights and considerations.

New Indicators Added by YTGATE

• - Scope of Analysis: Changes in card payment approval rates following the adoption of EMV 3-D Secure.
• - Trends in Approval Rates Pre- and Post-EMV 3-D Secure Implementation.
• - Analysis of Declines Based on Error Codes.
• - Visualization of the Impact of Cart Abandonment for Implementing Businesses.
• - Consumer Research on Dropout Rates.

These additions enable the report to encompass not just the "protective indicators" such as rising fraud figures but also "offensive indicators" like approval rates and customer dropout metrics. The result is a practical and actionable resource for stakeholders.

Background of the Research

In recent years, the surge in credit card fraud in Japan has escalated alarmingly. The losses due to fraud, which stood at approximately 14 billion yen in 2016, are projected to reach an unprecedented 55.5 billion yen in 2024. Notably, the overwhelming majority, over 90%, of these fraudulent incidents stem from "number theft," with serious cases of card information theft through EC sites rising sharply. The conventional method of transactions - using just the card number, expiration date, and security code - has increased the risk of easy fraud, especially if such data is leaked.

In response, as of March 2025, the implementation of EMV 3-D Secure will become mandatory, enhancing security across payment processes. However, this increased authentication can lead to a rise in transaction errors. Additionally, the liability for losses due to fraud is shifting primarily from e-commerce businesses to card issuers for those adopting 3-D Secure measures.

As the e-commerce market expands, merchants face complex challenges intertwining the enhancement of fraud prevention, the improvement of legitimate transaction approval rates, and the reduction of cart abandonment. Results from the survey distinctly indicate that the adoption of EMV 3-D Secure correlates with declining approval rates, validating its significance as a key concern for e-commerce operators, card companies, and consumers alike.

Contents of the Cashless Security Report 2025

1. Overview of Card Information Breaches in 2024
- (1) Trends in Number of Data Breaches and Information Leaks
- (2) Patterns of Card Information Breaches
- (3) Highlights from the 2024 Card Information Breaches
2. Overview of Fraud Trends in 2024 EC Sites
- (1) Changes in Credit Card Fraud Losses
- (2) Trends in Fraudulent Orders on EC Sites
- (3) Highlights of Fraud on EC Sites
- (4) Introduction of Domain Authentication (DMARC) by Issuers
- (5) Changes in Card Payment Approval Rates following EMV 3-D Secure Implementation
3. Fraudulent Transactions in Other Financial Services
- (1) Online Securities Account Takeovers
- (2) Voice Phishing Targeting Corporate Accounts
4. Policy Developments
- (1) Update on Credit Card Security Guidelines (6.0 version)
- (2) Enhanced Cooperation between the Police and Card Companies to Prevent Fraud
- (3) Additions to Q&A Regarding Guidelines on Personal Information Protection

Download the Report

The Cashless Security Report 2025 is accessible through the websites of the respective companies.

• - Link URL: Link
• - Cacco URL: Cacco

Recommended for Those Who Want to Understand:

• - The realities of fraud in e-commerce such as card information leaks and credit card misuse.
• - How their own fraud incidents compare with others in the industry.
• - The latest fraudulent methods.

Company Profiles

Link Corp.

• - Location: 2-14-4 Kita Aoyama, Minato, Tokyo, 14th Floor Argyle Aoyama
• - CEO: Genji Okada
• - Business: Cloud Hosting, Security Platforms, Telephony, Agriculture-related businesses.

Cacco, Inc.

• - Location: 1-5-31 Moto-Akasaka, Minato, Tokyo.
• - CEO: Hiroyuki Iwai
• - Business: SaaS Algorithm Provision (Fraud Detection Services, Payment Consulting Services, Data Science Services).

YTGATE

• - Website: YTGATE
• - CEO: Yutaro Takahashi
• - Location: 1-8-2 Shintomi, Chuo, Tokyo, 5th Floor Grandir Ginza East
• - Established: October 2, 2023.
• - Business: Payment Consulting, Assistance in Improving Payment Approval Rates, Payment Optimization SaaS Services.
• - Mission: "Optimizing payments, connecting the world," aiming to enhance payment approval rates and provide integrated solutions for safety measures, data visualization, and efficient payment processes for credit card merchants both domestically and internationally.

Official X: YTGATE Inc.

For Inquiries

• - For Report Inquiries: Cacco, PR Officer: Maeda
• - Email: [email protected]
• - Phone: 03-6447-4534 | Mobile: 050-3627-8878

• - For YTGATE Inquiries: Contact YTGATE