Collaboration Between MIKATA and YTGATE to Enhance Payment Approval Rates in E-commerce

Enhancing E-commerce Revenue: MIKATA and YTGATE Join Forces

In a significant move aimed at boosting the E-commerce industry's performance, MIKATA Inc. and YTGATE have announced their collaboration to offer a diagnostic tool that helps businesses visualize their payment approval rates. With the rise of E-commerce, ensuring that transactions are completed successfully has become crucial, and this initiative seeks to address the prevalent issue of revenue loss due to failed transactions.

Understanding the Collaboration

The partnership between MIKATA, a specialized media platform for E-commerce in Japan, and YTGATE, a newly established consulting firm, aims to provide E-commerce operators with a free online diagnostic service. Companies can enter their details and receive a month-long free trial of YTGATE's diagnostic tool, called "YTGuard". Alongside this trial, they will receive a health report summarizing their payment approval rate and improvement suggestions based on data held by YTGATE.

This initiative is designed not just to educate businesses about their own performance but also to foster improvement across the entire E-commerce sector. During the initial analysis phase, 100 E-commerce businesses with annual revenues ranging from 3 billion to 10 billion yen were targeted. The results revealed that the average payment approval rate was only 83.7%, with approximately half of the companies scoring below 85% (rank C or lower). This indicates a substantial opportunity for improvement within the industry.

The Problem with Payment Approvals

As the E-commerce market continues to expand in Japan, the issue of credit card fraud has been rising alarmingly. It is projected that the total damage from credit card fraud will reach a record 55.5 billion yen in 2024. Consequently, credit card companies have tightened their approval processes to combat fraud, often leading to legitimate transactions being unfairly denied. This creates a frustrating experience for consumers who wish to make purchases, ultimately resulting in lost revenue for E-commerce businesses.

The conversion rate (CVR) of E-commerce sites, which consists of access numbers, application rates, and payment approval rates, has been a critical focal point for many businesses. However, many have not adequately understood the final component—payment approval rates—until now. YTGATE has previously supported more than 50 major E-commerce businesses in improving their payment approval rates through its SaaS product "YTGuard."

Shared Vision and Commitment

Both companies share a common vision for addressing the challenges faced by E-commerce operators. Through this collaboration, they aim to visualize these challenges and contribute to the overall development of the industry. MIKATA's CEO, Ryosuke Kobayashi, emphasized that this initiative is part of their long-term commitment to resolving industry challenges and that they will continue to engage in activities that foster growth and improvement within the E-commerce sector.

YTGATE's CEO, Yutaro Takahashi, reiterated their mission to optimize payment processes and create a seamless experience for consumers. He believes that this collaboration will deliver valuable insights to E-commerce operators, improving payment visibility and ultimately boosting their sales and customer satisfaction.

Conclusion and Future Directions

The partnership between MIKATA and YTGATE marks a significant step forward in addressing some of the pressing challenges in the E-commerce sector. By offering businesses the tools and insights they need to improve their payment approval rates, they aim to reduce lost sales opportunities. As E-commerce continues to grow, initiatives like this will be vital in ensuring a sustainable and thriving market.

For further information and to apply for the diagnostic tool, please visit the dedicated page on MIKATA’s website. The future of E-commerce depends on understanding and optimizing payment processes, making this collaboration not only timely but essential for businesses looking to thrive in a competitive market.