4073.T

• Market Target Expansion

  • The company is broadly targeting a wide range of merchant needs regardless of business size, focusing on acquiring small-scale merchants through partnerships with card companies and the rollout of subscription-based multi-payment terminal services.
  • The company is advancing collaboration with new alliance partners to deliver joint proposals, and strengthening alliances with POS vendors to drive continued expansion of its addressable market.

• Payment Terminal 2.0 Initiative

  • The company has launched a full-scale rollout of Android-powered Payment Terminal 2.0, with 5 models from 2 manufacturers that add new value-added features to payment terminals. The company has secured contracts with major merchant clients and is scheduled to begin delivering these terminals.
  • Inquiries for terminal-based payment solutions for unmanned devices such as vending machines have increased, and sales teams are actively pursuing these leads to secure new orders.

• Subscription-Based Sales of Multi-Payment Terminals

  • This model reduces up-front implementation costs for merchants, enabling low-cost access to cashless payment services. Since it can be offered to merchants regardless of business size, the company expects significant user base expansion. It is also an easy-to-distribute product for the company's alliance partners.
  • The company is currently advancing an alliance with a major telecommunications provider for this offering.

• International Brand Payment Network Connection Service

  • Shifting merchants to connect directly to international brand payment networks reduces merchants' payment costs and improves GC Planning's own profit margin. The company is actively pitching this service to multiple merchant clients.

• Consolidated Payment Fee Revenue Solution

  • This offering consolidates all of a merchant's payment-related contracts into a single agreement, making it easy for merchants to adopt cashless payment services. When integrated with the company's "Sakura" payment terminal subscription service, it is expected to drive growth in recurring, stable stock revenue.
  • The company has recently signed a comprehensive agency agreement with a bank-affiliated card company for this offering.

• Omnichannel Expansion from In-Person Focus

  • This strategy expands the company's service portfolio from in-person only payments to include non-face-to-face payments. Seamless integration between in-person and non-face-to-face payment experiences delivers new value to merchants and end users. The company has already received inquiries from multiple companies for this solution.

As of the second quarter, cumulative year-to-date revenue reached 32.0% of the full-year forecast. While the second quarter revenue progress is modest, the Payment Integration Business has large contracted projects scheduled to be recognized in the second half of the fiscal year. Management maintains the original full-year earnings forecast, and expects full-year results to land in line with original projections with no upward or downward revision.

1. Payment Integration Business: Revenue remained flat year-over-year. Profit decreased year-over-year due to a decline in contracted development revenue and an increase in higher cost-of-goods-sold terminal sales volume, which pushed up total cost of sales. 2. Payment Service Business: Both revenue and profit decreased year-over-year. This decline was driven by large subscription-based revenue recorded in the prior year comparative quarter, plus the termination of partial services in the current quarter. Total company revenue for the quarter was 770 million yen (0.77 billion yen), a 14.3% decrease year-over-year. The company reported an operating loss of 146 million yen (0.146 billion yen), driven by lower profit margin in the Payment Integration Business.

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