Establishing a Strong Position in the Cashless Payments Market

「The Merpay Card, a credit card using AI-based credit assessment based on users' Mercari and Merpay transaction and behavioral histories, launched in November 2022, continued to grow steadily, reaching 6.32 million cards.」

「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.」

「With increased investment in the Merpay Card, the number issued exceeded 2.5 million. As receivables outstanding (Note 4) exceeded ¥150 billion alongside steady growth in the Credit service, the collection rate (Note 5) also remained strong at 99.1%. The number of crypto-asset trading accounts also exceeded 1 million within 7 months of the service launch.」

「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.」

「• Merpay users: 15.71 million • Merpay Cards issued: 1.25 million • Bitcoin trading service users: 530,000」

「The number of Merpay Cards issued exceeded 650,000 as of the end of March. In addition, the number of trading accounts opened for the service enabling users to buy and sell bitcoin within Mercari, launched on 9 March, exceeded 100,000, and both services continued to grow strongly.」

「To further grow the Credit business and strengthen its earnings base, we announced our entry into the credit card business and began rolling out the Merpay Card on 8 November 2022. Although still in the early stages of campaigns to acquire members and encourage usage, membership has been growing strongly.」

「Growth in Smart Payments, particularly the fixed-payment option, improved earnings, and the company achieved its first full-year operating profit before adjustments (Note 6).」

「Merpay users reached 12.92 million (Note 3). As initiatives to drive further growth in the credit business proved effective, the number of identity-verified users also increased steadily, and the proportion of identity-verified users among Merpay users rose to 85.6%.」

「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.」

「As users and balances for the Merpay Smart Payments fixed-payment option, a key focus area, continued to increase steadily, Merpay users reached 11.35 million (Note 2). The company also established an earnings structure centered on the credit business and achieved its first quarterly operating profit in the first quarter.」

「Users and balances for the Merpay Smart Payments fixed-payment option, a key focus area, have been steadily increasing, and Merpay users reached 10.67 million (Note 2).」

「As a result, Merpay users reached 9.8 million (Note 3) and continued to grow steadily.」

「In particular, users of Merpay Smart Payments (single-payment and fixed-payment options) have been steadily increasing in the credit business. Since November last year, we have also introduced fees for Merpay Smart Payments (fixed-payment option), at an annual rate of 15%, to strengthen earnings. As a result, Merpay users reached 8.5 million (Note) and continued to grow 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.」

「We are expanding the number of merchants where Merpay can be used through service integration with contactless payment service iD, provided by Sumitomo Mitsui Card Company, Limited, and code-payment platform Smart Code, promoted by JCB Co., Ltd., among others.」

「Based on the technological capabilities and extensive customer and information infrastructure developed through Mercari, our group began providing the smartphone payment service Merpay in February 2019. Merpay aims to provide payments for everyday use, while acquiring customers and merchants and building a new credit-centered ecosystem. As a result, the number of Merpay users exceeded 6 million (Note 2) and continued to grow steadily.」

「Merpay aims to provide payments used in everyday life. Alongside acquiring customers and merchants, it is building a new ecosystem centered on credit. As a result, the number of Merpay users exceeded 5 million (Note 2) and continued to grow 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 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.」

「During the early stage of the rapidly growing cashless payments market, where many payment services compete, Merpay will focus particularly on upfront investment to expand its customer and merchant base and on creating synergies with Mercari in order to establish a strong position.」