Expansion of Payment and Financial Services through Merpay

「Driven by steady member growth for Mercard and the expansion of use cases, external transaction volume increased, and the balance of receivables (Note 2) grew steadily to ¥358.1 billion, up 44.4% year on year. The collection rate (Note 3) remained high at 99.4%, supported by strict credit controls leveraging proprietary AI-based credit assessment.」

「Fintech is working to establish products that will be chosen for all kinds of everyday payment and credit needs. During the interim consolidated fiscal period, payments within and outside Mercari expanded alongside the acquisition of Merpay Card members, bringing receivables (Note 2) to ¥300.7 billion, up 41.0% year on year. The collection rate (Note 3) remained at 99.3%, supported by strict credit controls using proprietary AI credit assessment. As a result, revenue continued to grow strongly, up 21.0% year on year, or 33.4% excluding the accounting treatment under which part of point expenses is deducted from revenue. Core operating profit increased by ¥2.9 billion year on year to ¥4.6 billion despite aggressive investment mainly to acquire Merpay Card members.」

「Merpay Card, a credit card using AI credit assessment based on Mercari usage history and launched in November 2022, expanded steadily, surpassing 5 million cards issued, and group synergy creation progressed steadily. In March 2025, the company also released Merpay Card Gold to increase payment revenue and expand credit usage, along with pursuing other product initiatives.」

「As receivables steadily accumulated, Fintech entered a phase of sustained earnings growth from the current consolidated fiscal year. By pursuing management focused on monetization, Fintech recorded core operating profit of ¥1.6 billion in the interim consolidated fiscal period.」

「The number of cards issued increased steadily, and group synergy creation progressed steadily, including a 50% increase in ARPU within Mercari among Merpay Card holders.」

「The company strengthened investment to acquire Merpay Card users in response to demand from new lifestyles, and the number of cards issued surpassed 3 million. As Credit services continued to grow steadily and receivables (Note 4) increased, the receivables collection rate (Note 5) remained high. The number of crypto-asset trading accounts also surpassed 2 million as of the end of March.」

「Fintech is focusing on acquiring Merpay Card members and strengthening group synergies as this fiscal year's business policy. With increased investment in Merpay Card, the number of cards issued surpassed 2.5 million. As the receivables balance (Note 4) exceeded ¥150.0 billion alongside steady Credit service growth, the collection rate (Note 5) also remained strong at 99.1%. The number of crypto-asset trading accounts surpassed 1 million seven months after the service began.」

「Through effective investment leveraging its user base, the number of Merpay Cards issued surpassed 2 million in just over 11 months. In addition to the increase in ARPU (Note 4) within Mercari resulting from card issuance, signs have emerged that the cards are contributing to an increase in listings, indicating progress in creating group synergies. The number of Bitcoin trading accounts also increased strongly, surpassing 1 million seven months after launch.」

「Fintech operates the smartphone payment service Merpay. By leveraging the group's advanced technological capabilities and Mercari's proprietary customer and information infrastructure, it is working to expand its business through the creation of new credit, centered on Credit services. Steady progress was made toward creating group synergies, including the launch of Merpay Card, a credit card using AI credit assessment based on Mercari usage history, and a service enabling Bitcoin trading using sales proceeds and points.」

「Fintech is pursuing “the promotion of circular finance through stronger group synergies” as this fiscal year's business policy. Credit services continued to drive growth, with receivables surpassing ¥100.0 billion as usage of existing services, particularly installment payments, expanded and usage through Merpay Card was added. The receivables collection rate also remained stable.」

「To support further growth of the Credit business and strengthen its earnings base, the company announced its entry into the credit card business and began rolling out Merpay Card on 8 November 2022. Although it was still in the early stages, with campaigns under way to acquire members and encourage usage, membership grew strongly. The company began investing to acquire Merpay Card members and encourage usage, but Fintech remained unadjusted-operating profitable in the second quarter because the Credit business, promoted since the fiscal year ending June 2021, had established a certain earnings base and continued to grow steadily.」

「As the Credit business expanded and strengthened the earnings base, the company achieved unadjusted operating profitability in the first quarter, following the previous fourth quarter. The identity-verified user ratio increased to 87.2%, contributing not only to safe and secure usage by users but also to the growth of the Credit business by enabling a smooth start to Credit services.」

「Since the fiscal year ending June 2021, the company has worked to strengthen earnings power, particularly in the Credit business, which grants credit using proprietary logic. As a result, it achieved its first full-year unadjusted operating profit in the fiscal year ended June 2022. It also actively promoted identity verification through eKYC and other methods, bringing the identity-verified user ratio to 86.2%.」

「Merpay continued to strengthen earnings power, particularly in its credit business, which provides services based on proprietary credit assessment using Mercari usage history and AI technology. As a result, it established an earnings base capable of achieving recurring profitability on an unadjusted operating basis for the services currently provided, and unadjusted operating profit was positive in the third quarter. Merpay users reached 12.92 million. As initiatives for further growth in the credit business proved effective, the number of identity-verified users also increased steadily, with identity-verified users accounting for 85.6% of Merpay users.」

「Merpay, which provides smartphone payment services, continued to strengthen earnings power, particularly in its credit business, by using Mercari usage history and AI technology to provide appropriate credit based on users' latest usage status. As a result, Merpay users reached 12.14 million and receivables from installment payments surpassed ¥35.0 billion, indicating steady growth.」

「Having obtained the first AI credit assessment certification for a business operator, we expect to be able to provide credit more flexibly and appropriately and design services more effectively than before. As a result, users and receivables for the priority Merpay Smart Payments (installment payments) service increased steadily. Merpay users reached 11.35 million, and the company established an earnings structure centered on credit, achieving its first quarterly operating profit in the first quarter.」

「Merpay operates in three areas: “Payments,” “Credit” and “Fueru Wallet,” providing and improving services in each area to enhance convenience and the user experience. Since the fiscal year ending June 2021, the company has focused on strengthening earnings power, particularly in Credit, where credit is granted using proprietary logic. As a result, it achieved monthly operating profitability in May 2021, albeit temporarily. The company has also actively promoted identity verification through eKYC and other methods, and the ratio of users who had completed identity verification exceeded 80%.」

「In addition to payments and credit, Merpay, which provides smartphone payment services, is working to build a service enabling asset management using the Merpay balance (Note 1). In the credit business, the number of users of Merpay Smart Payments (next-month and installment payments) continued to increase steadily as the company worked to strengthen earnings power. To build a safe and secure environment, Merpay also actively advanced identity verification and measures against unauthorized use, including launching identity verification using JPKI (Note 2), the first such initiative in the payments industry. As a result, Merpay users reached 9.8 million and continued to increase steadily.」

「In addition to payments and credit, Merpay, which provides smartphone payment services, is working to build a service that enables asset management using the Merpay balance. In the credit business, the number of users of Merpay Smart Payments (single-payment and installment-payment options) has increased steadily, and since November of the previous year the company has pursued stronger earnings power by beginning to charge fees, including an annual fee rate of 15% for Merpay Smart Payments (installment payments). The company is also strengthening identity verification and measures against unauthorized use to build a safe and secure environment for Merpay users. As a result, Merpay users reached 8.5 million and continued to increase steadily.」

「Merpay is preparing to monetize its business by expanding its credit operations, including Merpay Smart Payments. It is also strengthening identity verification and measures against unauthorized use to create a safer and more secure environment for Merpay users. As a result, Merpay users reached 8 million and continued to increase steadily.」

「As a result, Merpay users exceeded 7 million and continued to increase steadily.」

「The group began providing the smartphone payment service Merpay in February 2019, based on the technological capabilities developed through Mercari and its extensive customer and information infrastructure. Merpay aims to provide “payments used in everyday life,” while acquiring customers and merchants and building a new ecosystem centered on credit. As a result, Merpay users exceeded 6 million and continued to increase steadily. During the third quarter of the current consolidated fiscal year, Origami Inc. was included in the scope of consolidation following the acquisition of its shares.」

「The group began providing the smartphone payment service Merpay in February 2019, based on the technological capabilities developed through Mercari and its extensive customer and information infrastructure. Merpay aims to provide “payments used in everyday life,” while acquiring customers and merchants and building a new ecosystem centered on credit. As a result, Merpay users exceeded 5 million and continued to increase steadily. Users surpassed 6 million on 25 January 2020.」

「The group began providing the smartphone payment service Merpay in February 2019, based on the technological capabilities developed through Mercari and its extensive customer and information infrastructure. Merpay aims to provide “payments used in everyday life,” while expanding its customer and merchant base and building a new ecosystem centered on credit, including Merpay Smart Payments (formerly Merpay Deferred Payment). As a result, Merpay users exceeded 4 million and the number of merchants accepting Merpay reached 1.7 million, both continuing to increase steadily.」

「In addition to expanding its merchant base through its “OPENNESS” strategy of promoting neutral, open partnerships across industries, the company expanded its services by opening Merpay Deferred Payment to external merchants and supporting online payments. As a result, Merpay registered users surpassed 2 million on 18 June 2019 and continued to increase steadily.」

「Based on the technological capabilities developed through Mercari and its extensive customer and information infrastructure, the group began providing the smartphone payment service Merpay, compatible with the contactless payment service “iD” (Note 5), on 13 February 2019. On 14 March, Merpay also became compatible with QR-code payments through its “Code Payment” function. Together with iD-affiliated merchants, Merpay can be used at 1.35 million merchants nationwide, with support to be added progressively.」

「The absorption-type company split agreement was duly implemented on 1 February 2019.」

「By transferring part of the payment services business held by the company to Merpay, we will further consolidate the financial services provided by the group under Merpay and achieve expansion of the financial services business more quickly and efficiently than before.」

「With the mission of “Creating credit and building a frictionless society,” Merpay aims not merely to provide new payment methods, but to create new forms of credit and offer a range of financial services based on the company's technological capabilities and the extensive customer and information infrastructure accumulated through the C2C marketplace Mercari.」