Nihon Unisys and DNP to Offer Global Brand Direct Debit Payment Service
Adopted by Hokkoku Bank debit card with Visa payWave(1) in Japan
Nihon Unisys, Ltd.
Dai Nippon Printing Co., Ltd.
Nihon Unisys, Ltd (Nihon Unisys) and Dai Nippon Printing Co., Ltd. (DNP) have commenced the provision of necessary functions for the adoption and operation of debit cards bearing major global payment brand in Japan, such as the transaction processing, membership management and links to accounting systems, along with night time service coverage. The partners are cooperating under an existing alliance in the area of global brand e-settlement services, and following the 2015 launch of global brand prepaid cards will now offer a one-stop, total service for global brand direct debit service.
We are also pleased to announce that The Hokkoku Bank Ltd. (Hokkoku Bank) will launch a debit card with Visa payWave on April 1, 2016 as the first domestic user.
The new service refers to a direct debit payment service operated on a global basis at member-stores of the global payment brands such as Visa, MasterCard and JCB. In principle, no screening is required at time of application as long as the prospective user maintains a bank account, and unlike prepaid cards it is not necessary to pre-charge the card. As the scope of usage is limited by bank balance, there are no concerns for overuse, and one feature of the new service is that it is convenient and can be used with confidence. Financial institutions are promoting cashless settlements to users with little credit history, such as younger people and seniors, and are focusing on global brand direct debit services as a way to revitalize bank accounts.
According to New Payment Report 2014, issued by Nihon Card Business Institute, cashless settlements comprised approximately 18% of the payment market in Japan in 2014. Despite such low usage levels, however, the Japanese government has positioned the promotion of such settlements as a part of the growth strategy. And at present a public-private partnership is laying the groundwork for their introduction, boosting expectations amongst global payment brand direct debit for the future of cashless settlements.
Against this backdrop, Nihon Unisys which boasts highly reputable mission critical system development and operations know-how developed in the financial and aircraft industries, and DNP which maintains the top domestic track record in the processing of global brand prepaid cards(2), have joined hands. In April 2015, the partners launched a global brand prepaid card service, and in this latest development have jointly established a common settlement platform for global brand direct debit service.
[Direct Debit Payment Service]
This service offers basic functions including transaction processing, membership management and links to accounting systems, along with night time service coverage, and the creation and operation of web sites targeting members. For financial institutions, it is possible to adopt global brand direct debit services at lower cost and with a shorter lead time compared to instances of developing similar systems on an in-house basis.
In addition to system configuration and operation, Nihon Unisys and DNP help financial institutions to reduce operational burdens by bundling together such services as smart card manufacture and personalization, and authentication services when cards are used in online shopping.
Financial institutions utilizing BankVision(3), the next generation open accounting system offered by Nihon Unisys, will be in a position to further reduce costs by communalizing interfaces with accounting systems, and via dedicated line connections with those systems.
The new service conforms to PCI-DSS(4), and operates in a highly secure environment.
[Adoption Case Study]
As the first domestic user of this service, Hokkoku Bank will launch a Visa-branded debit card with attached Visa payWave contactless payment functions on April 1, 2016. The new card will allow for shopping at more than 38 million Visa participating merchants, including internet stores, on a 24/7 basis. Charges will be directly debited from registered accounts at Hokkoku Bank and paid. Loyalty points will also be granted depending on the usage amount. Looking ahead, Hokkoku Bank also has plans to issue a joint direct debit and cash card.
Hokkoku Bank card design
Nihon Unisys and DNP will expand global brand direct debit-related Business Process Outsourcing and marketing support services. And apart from various global brand direct debit-related services, will also provide smart card manufacture and personalization, along with authentication and accounting system services. The partners will offer global brand direct debit-related services to financial institutions, aiming for total sales of 4.0 billion yen in the four year period to FY 2019.
Nihon Unisys and DNP entered into a business alliance in August 2012, and are promoting Marketing Platform, a common strategy targeting corporate change whereby marketing is conducted on a cross-company and cross-industry basis. We will focus on digital contents and digital commerce, in addition to next-generation payments including this latest service, as priority areas.