#Japan #Tokyo #Embedded Finance #Minna no Ginko #TMN

Introduction

Transaction Media Networks (TMN), based in Chuo, Tokyo, is set to transform the retail landscape by collaborating with Minna no Ginko, a subsidiary of the Fukuoka Financial Group located in Fukuoka City. Both parties have signed a Basic Agreement to explore new avenues in embedded finance for retailers.

Background of the Collaboration

The retail sector has witnessed a significant shift toward cashless payment systems, with an increasing focus on creating unique payment mechanisms like house prepaid and house credit systems. Companies are looking to enhance customer engagement through these methods while also leveraging data to drive insights. Simultaneously, there’s a growing interest in incorporating financial functionalities into non-financial services through embedded finance. TMN aims to lay down a robust payment network that facilitates retail operations while enabling retailers to integrate financial services into their businesses effectively.

Objectives of the Partnership

The collaboration between TMN and Minna no Ginko aims to achieve the following:

• - New Payment Experiences for Consumers: Through innovative services and technologies implemented by Minna no Ginko, a more enjoyable and seamless payment experience will be provided to customers.
• - Growth for Retailers: By enhancing customer loyalty and facilitating digital transformations, the partnership aims to stimulate business growth for retailers.
• - Supply Chain Efficiency: Supporting the optimization of supply chain processes to improve overall operational efficiency.

Key Areas of Collaboration

The Basic Agreement outlines specific areas for collaboration, primarily focusing on:

1. Integration of Direct Bank Account Charging Features: TMN plans to enrich its house prepaid service with a feature that allows customers to charge directly from their bank accounts through the API provided by Minna no Ginko. This will enhance user convenience and encourage customer engagement, ultimately aiding retailers in retaining their clientele.

2. Development of Embedded Financial Services for Retailers: TMN will leverage its network with supermarkets, convenience stores, and drugstores to provide embedded financial services. This service aims to integrate Minna no Ginko's financial functionalities directly into retail apps without requiring the retailers to establish their own financial systems. Furthermore, these services will include credit assessment and interest-setting based on transaction data, contributing to the revitalization of local economies centered around retail.

Future Initiatives

Both companies aim to implement direct bank account charging features and develop credit models by FY 2027. Detailed discussions regarding service specifications and systems integration are currently underway. TMN will continue to create high-value-added services centered around payments, contributing to the growth of retailers and enhancing consumer convenience.

PFM Business Concept

The PFM (Personal Financial Marketing) business concept encapsulates new financial services tailored for consumers in collaboration with retailers and manufacturers. It strives to create new revenue streams through enhanced visibility of supply chain information and new financial service offerings for retailers.
In prior initiatives, TMN has launched services like a data hub for retailers and invoice card payment services aimed at streamlining B2B transactions. The company is committed to expanding these services further.

Overview of Minna no Ginko

As Japan's first digital bank aimed at the digital-native generation, Minna no Ginko offers frictionless banking experiences entirely through its mobile app, eliminating the need for physical locations or paperwork. It provides services ranging from account opening to ATM transactions and loans seamlessly through its application. Additionally, Minna no Ginko's Banking as a Service (BaaS) model enables partner companies to integrate financial functionalities into their services easily.
More information is available on their official website.

Overview of TMN

TMN specializes in supporting distribution through data leveraging and payment infrastructure. Since pioneering cloud-based electronic payments in Japan, TMN has grown a comprehensive gateway business that connects various payment methods. Their robust payment network currently handles approximately ¥4.9 trillion in transactions annually while supporting over 1.1 million terminals across various sectors.
For more detailed information, visit TMN’s official website.