Credit Risk Associated with Buy Now, Pay Later Payments
First written in FY2016-Q3. 9 of 14 entries say "Mitigated", first in FY2019-Q2. Latest entry: 2026-05-15.
0 other companies' latest entry also says "Mitigated".
- 2026-05-15MitigatedEarnings presentation
「Strengthening the operating framework for receivables collection」
To address credit risk associated with buy-now-pay-later services, the company presented efforts to strengthen collection operations and build an AI data platform that automatically generates credit assessment logic according to risk characteristics. - FY2026-H1MitigatedAnnual report
「Improved credit assessment accuracy and stronger collection operations in postpay payment services kept the non-collection rate stable at a low level, allowing credit-related expenses to be kept at a certain level.」
Regarding credit risk associated with postpay payments, the company explains that improved credit assessment accuracy and stronger collection operations stabilized the non-collection rate at a low level and allowed credit-related expenses to be kept at a certain level. - FY2025-H1MitigatedAnnual report
「Improved credit assessment accuracy in postpay payment services kept the non-collection rate stable at a low level, allowing credit-related expenses to be kept at a certain level.」
Regarding credit risk associated with postpay payments, the company explains that improved credit assessment accuracy stabilized the non-collection rate at a low level and allowed credit-related expenses to be kept at a certain level. - FY2024MitigatedAnnual report
「The non-collection rate for postpay payment services declined further, allowing credit-related expenses to be kept at a certain level.」
Regarding credit risk associated with postpay payments, the company explains that the non-collection rate declined further and credit-related expenses were kept at a certain level. - FY2024-Q2MitigatedAnnual report
「The non-collection rate for postpay payment services declined, allowing credit-related expenses to be kept at a certain level.」
Regarding credit risk associated with postpay payments, the company explains that the non-collection rate declined and credit-related expenses were kept at a certain level. It does not state that the credit risk itself has been eliminated. - FY2024-Q1MitigatedAnnual report
「Segment profit (operating profit) was ¥800.493 million, up 30.1% year on year, as credit-related expenses for postpay payment services were kept at a certain level and lending services for overseas FinTech companies expanded.」
Keeping credit-related expenses associated with postpay payments at a certain level was identified as a factor behind the increase in profit. The company does not state that the credit risk itself has been eliminated. - FY2023-Q1WorsenedAnnual report
「Increase in credit-related costs for GMO Postpay」
For credit risk associated with postpay payments, higher credit-related costs were reported as an actual result, representing a change from the previous explanations of expense containment and profit improvement. - FY2022Explicit expansion of the scope of credit recipientsAnnual report
「In conducting its business activities, the Group extends credit to merchants, consumers, overseas investees and business partners, among others.」
In addition to merchants and consumers, the company explicitly identifies overseas investees and business partners as parties subject to credit risk. - FY2021WorsenedAnnual report
「In the financial services business, services involving credit risk, including GMO Postpay and lending services to domestic and overseas merchants and businesses, could generate more bad debts than expected as economic conditions deteriorate, potentially affecting the Group's business performance and financial position.」
The company explicitly expands the scope of credit risk beyond GMO Postpay to include lending and other services for domestic and overseas merchants and businesses, and identifies the possibility of higher-than-expected bad debts if economic conditions deteriorate. - FY2021-Q3MitigatedAnnual report
「Revenue growth slowed due to the conservative approach to credit assessment in consideration of the spread of COVID-19 and the reaction to stay-at-home consumption demand in the same period of the previous year. However, segment profit progressed steadily because credit-related expenses were kept at a certain level.」
The company explains that it managed credit conservatively in relation to credit risk associated with GMO Postpay and other services and kept credit-related expenses at a certain level. It does not state that the risk has been eliminated. - FY2021-Q1MitigatedAnnual report
「Revenue and segment profit both progressed steadily as the company was able to keep credit-related expenses at a certain level.」
The ability to keep credit-related expenses associated with GMO Postpay and other services at a certain level was identified as a factor behind profit growth in the financial services business. - FY2019-Q2MitigatedAnnual report
「In addition to the effect of higher revenue, expenses declined as a result of various company initiatives to reduce credit risk, resulting in segment profit (operating profit) of ¥987.978 million, up 69.3% year on year.」
The company explains that expenses declined as a result of initiatives to reduce credit risk, identifying the response to credit risk associated with postpay services and lending as a factor in profit improvement. It does not state that the risk has been eliminated. - FY2016RestatedAnnual report
「The Group assesses the credit information of merchants and consumers in accordance with prescribed rules, but if non-collection exceeds expectations, it could affect the Group's business performance and financial position. In addition, working capital is required in line with the scale of the business.」
The company conducts assessments for lending to merchants and credit extended through GMO Postpay, while continuing to explicitly disclose the risk of non-collection exceeding expectations. - FY2016-Q3First statedAnnual report
「(Financial services business) Postpay payment services involving credit risk, including GMO Postpay, and the Money Service Business (MSB), including the Early-Payment Service, transaction lending and the GMO-PG Remittance Service」
The company explicitly states that the financial services business, including GMO Postpay, comprises services involving credit risk.