Providing a diverse solutions platform that goes beyond low-cost SIMs

「FPoS transitioned from demonstration testing to commercial services, and the number of electronic certificates provided stood at 127,646 as of the end of March 2026.」

「In addition, in May 2024, we released the “FPoS Library,” which modularizes FPoS’s core functions. Service providers offering services through smartphone applications can incorporate the “FPoS Library” into their own applications to equip them with identity verification, authentication of the individual and data integration functions at the same level as “めぶくID.”」

「In addition, in March 2024, following Maebashi City in Gunma Prefecture and Ebetsu City in Hokkaido, the use of “めぶくID” and the data integration platform began in Omura City, Nagasaki Prefecture.」

「In addition, in December 2023, the “めぶくPay” service, Maebashi City’s electronic local currency, was launched through “めぶくID” and the “めぶくアプリ.” “めぶくPay” was designed and developed with the highest priority placed on ensuring that payment data remains in the community, is used locally and is returned to the community.」

「To demonstrate the potential of FPoS, we are cooperating with めぶくグラウンド株式会社, a public-private partnership established by Maebashi City, private companies and universities. Since October 2022, めぶくグラウンド株式会社 has operated the “めぶくアプリ,” which issues “めぶくID,” a digital ID using FPoS technology.」

「In addition, we partnered with めぶくグラウンド株式会社, a public-private partnership established by Maebashi City, 57 private companies and universities, among others, and equipped FPoS with a “dynamic opt-in” function.」

「“めぶくID” enables users to access both public services, such as administrative procedures, and private-sector services via smartphone. By March 2023, application services including “メブクラスまえばし,” “my Allergy alert,” “まえばし見守り情報通知＋掲示板,” “グッドグロウまえばし,” “OYACO plus,” and “共助ポイント” had been launched under Maebashi City’s “まえばし暮らしテック推進事業.”」

「In one such project, the “Maebashi Smart Living Tech Promotion Project” applied for by Maebashi City, mebuku Ground Co., Ltd., an operating company established with investments from leading companies and financial institutions in Gunma Prefecture, released the “mebuku App,” incorporating a digital ID (“mebuku ID”), in October 2022. “mebuku ID” enables users to access both public services, such as administrative procedures, and private services on their smartphones. At the “Maebashi BOOK FES,” held in Maebashi City at the end of October 2022 as an event where people brought their own books and connected them with new readers, it was used as a digital ID connecting books and people.」

「The “mebuku ID” platform incorporates FPoS, and the Company supports “mebuku ID” as FPoS’s first use case. Gunma Prefecture and Ebetsu City also plan to use “mebuku ID,” and the Company plans to deploy services incorporating FPoS in these 3 regions during the current fiscal year.」

「Accordingly, the Company plans to deploy services incorporating FPoS in these 3 regions during the current fiscal year.」

「There were 9 services accredited under the Electronic Signatures Act before the Company’s subsidiary obtained accreditation, but my FinTech’s “my Electronic Certificate” became the first electronic certificate installed on a smartphone to receive such accreditation.」

「The Company is also preparing to commercialize FPoS, a FinTech platform and medium- to long-term growth driver. By the end of the current cumulative second-quarter consolidated period, it had strengthened the shareholder structure of my FinTech Co., Ltd., the operating entity for FPoS, and established a structure to advance the FPoS business through both strategic planning and technology development by bringing in Deloitte Tohmatsu Financial Advisory LLC and Climb Co., Ltd. as new equity investors. my FinTech Co., Ltd. applied for accreditation under the Electronic Signatures Act in January 2021, and if accredited, this will be the first electronic certificate installed on a smartphone to receive accreditation under the Electronic Signatures Act.」

「The Company is also preparing to commercialize FPoS, a FinTech platform and medium- to long-term growth driver. my FinTech Co., Ltd., the operating entity for FPoS, applied for accreditation under the Electronic Signatures Act in January 2021, and the investigation related to accreditation is currently underway.」

「Against this backdrop, the Company aims to commercialize “FPoS” as a secure digital ID with legal backing under the Electronic Signatures Act. In January 2021, its subsidiary my FinTech Co., Ltd., a joint venture with Japan ATM Co., Ltd., applied to the competent ministers (the Minister of Internal Affairs and Communications, the Minister of Economy, Trade and Industry, and the Minister of Justice) for accreditation as a specified certification service under the Electronic Signatures Act for its “my Electronic Certificate” service, which issues electronic certificates to iPhone and Android smartphones. An investigation by the Japan Institute for Promotion of Digital Economy and Community (JIPDEC), a designated investigation body appointed by the competent ministers, has commenced.」

「The Company aims to commercialize “FPoS” as a secure digital ID with legal backing under the Electronic Signatures Act. Together with its subsidiaries my FinTech Co., Ltd. and Secure ID Co., Ltd., as well as partner companies, it is pursuing initiatives to commercialize “FPoS” not only as a financial platform but also as a secure digital ID.」

「Secure ID Co., Ltd. will combine the patent technologies and know-how of both companies to develop and expand sub-SIM solutions for the Japanese and overseas markets.」

「FPoS enables electronic signatures on smartphones with the same legal effect as a seal, and its adoption will not only enable secure financial transactions but also electronic execution of contracts.」

「Because FPoS is expected to have potential customers across a wide range of industries, including financial institutions, payment service providers, medical institutions, educational institutions and other businesses requiring user identity verification, as well as national and local governments, the Company plans to build up individual use cases and then expand horizontally into other applications.」

「Secure ID Co., Ltd. supports the growth of FPoS from the hardware perspective of its sub-SIM, one of FPoS’s strengths, and also aims to expand FPoS services overseas.」

「Regarding the commercialization of FPoS, the Company is pursuing initiatives to create use cases as the next step, following recognition in the previous consolidated fiscal year that FPoS complies with the supervisory guidelines after undergoing the Financial Services Agency’s proof-of-concept testing, as well as completion of the patenting of its core technology.」

「The Company also obtained a patent for FPoS’s core technology in March 2019. This completed the foundations for regulatory compliance with the Financial Services Agency’s supervisory guidelines and intellectual property through patent protection for the FinTech platform, and prepared the Company to move toward commercialization.」

「On 24 January of this year, the Financial Services Agency announced, based on the results of this proof-of-concept testing, that FPoS presented “no particular problems from the perspective of identity authentication when conducting non-face-to-face transactions using communications methods such as the internet.” This eliminated the institutional barriers to adoption of FPoS by banks and other institutions. The Agency also announced that FPoS could serve as a countermeasure against increasingly sophisticated and advanced criminal techniques identified in its supervisory guidelines, including man-in-the-middle attacks and man-in-the-browser attacks. As no financial institution currently offers general consumers an effective countermeasure against such techniques, FPoS is the only option. The Company will deploy FPoS in Japan to enable the world’s safest financial transactions on smartphones and will actively pursue overseas expansion.」

「On 31 May of this year, FPoS was selected for support under the Financial Services Agency’s “FinTech Proof-of-Concept Hub.” Through the end of October, proof-of-concept testing will be conducted by Gunma Bank, Chiba Bank, Tokushima Bank, Money Forward and Cybertrust, with a final report scheduled to be submitted to the Financial Services Agency in mid-December. The Company is also advancing initiatives toward commercializing FPoS.」

「The first commercial service using this proprietary SIM was “Henn-na SIM,” launched on 1 July 2018 by H.I.S.Mobile Co., Ltd., a joint venture between the Company and H.I.S.Co.,Ltd. Customers can use international roaming at the low price of ¥500 per day by leaving their SIM issued by their mobile carrier (the primary SIM) in place and using “Henn-na SIM” as a secondary SIM.」

「The Company is developing the platform described in (2) as FPoS (Fintech Platform over SIM, pronounced “F-pos”), a platform enabling secure financial transactions over the internet, and is conducting a proof-of-concept demonstration with support from the Financial Services Agency.」

「One such platform is a security platform enabled by issuing SIMs. It uses SIMs, which are also IC chips, to provide a secure platform, and specifically involves developing a platform for FinTech.」

「SIMs are the most widely used IC chips in the world. By providing its proprietary SIMs, the Company can establish robust SIM authentication and plans to apply it in various fields, including FinTech, MedTech (the field integrating healthcare and technology), RegTech (the field integrating regulation and technology), and IoT.」

「The Company plans to actively expand its business in the IoT field as an enabler.」

「By around summer 2017, this will enable the Company to offer Japan Communications SIM using its core networks, including HLR/HSS. This means that the Company will face no restrictions on its ability to develop services as an MVNO, an ability it has sought for many years, and will finally be able to realize the true Japan Communications envisioned since its founding.」

「The US MVNO business is centered on wireless leased lines, primarily for financial institutions (note: “wireless leased line” is a registered trademark of the Company), and is expanding horizontally into related fields such as POS systems, as well as education and the management of installed safes at retail stores.」

「In particular, the redundant communications service using two mobile networks under the dual-network strategy announced in December 2015 is expected to be adopted in many areas as an alternative to conventional wired leased lines and ISDN lines, which were scheduled to be discontinued in 2020. Security is also a major issue in many IoT fields, and the Company’s patented wireless leased-line technology has been highly regarded.」

「As a result, MVNOs will be able to provide a platform for various solutions in fields including IoT, FinTech (a market created by the integration of finance and technology), EdTech (a market created by the integration of education and technology), and MedTech (a market created by the integration of healthcare and technology), rather than being merely low-cost SIM providers.」