Confidential

Introduction ofMulti Payment Network “Pay-easy”

May,2014

JAMPA(Japan Multi-Payment Network Promotion Association)

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What is Multi Payment Network “Pay-easy” ?
Multi Payment Network contributes smooth money collection in.

 National tax-asset tax-import tax

 governmental fund-pension premium-patent registration fee Local tax-auto motive tax-consumption tax

 Bill payment-telecom-e-commerce
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What is Multi Payment Network “Pay-easy”?

Multi-Payment Network “Pay-easy”,established in 2001, directly connects to major billers and financial institutions in Japan.

＜Key features＞
 Participated by National/Local governments
 Connects to BOJ system
for final settlement
 Uses unique bill’s ID for user identification
 Invested and developed by a
private system company

Banks
Financial
institutions
Postal Bank

Privatecompanies
Local
governments

Public offices

Bank of Japan2

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What is Multi Payment Network “Pay-easy”?
 Background: Needs for Improving Bill Payment
 From Users- Users want to pay anytime, anywhere through any channels

 From Billers and Banks- Billers and banks want to efficiently process bill payments

MPN was established to meet both needs.

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Delivery Channels of MPN

Internet banking, mobile banking

 Approximately 1,500 financial institutions all over Japan, which means
almost all Japanese financial institutions, are providing MPN services

ATMs More than 60,000 ATMs all over Japan are available for MPN
 ATMs provided by 18 banks are available for MPN
 Also, more banks’ ATMs will be expected to add

Bank Windows (Tellers) Windows in bank branches are also available

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Amount of Money and Transactions in ‘Pay-easy’
FY2013
Total amount:
9.7 trillion JPY(= 96 Billion USD)FY2013
Total transaction:
61.8 million

10.0
9.0

National treasury fundLocal government fundPrivate company charge

7.0
7.24

6.0
6.14

5.0
4.0

5.36
4.69
3.89

3.0

0.0

60

National treasury fundLocal government fund50

Private company charge

40

8.78
4.63

30

8.67

7.07
8.68

1.28

1.38

0.84

1.01

1.07

2011

2012

2013

1.14

1.17

1.21

0.69

0.77

2009

2010

10

13.26
11.04

10.22

11.43

9.49

20

2.0
1.0Million transactions

Trillion JPY

8.0

70

24.94

25.74

27.49

2009

2010

2011

34.9237.09

2012

2013

05

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Governance of MPN
 MPN is managed by two organizations, JAMMO and JAMPA.
 JAMMO mainly consists of banks and takes charge of MPN operations,and JAMPA takes charge of promotion of MPN.
JAMMO

JAMPA

(Japan Multi-Payment Network
Management Organization)(Japan Multi-Payment Network
Promotion Association)

Mission• Development andmanagement of networks• Decision of specifications, etc.
Non membersof JAMPA

Constituents• Finical Institutions• Billers also join as guests

Openspecifications

Promotion

inquiryMission• Gathering opinions onspecifications of networks• Promotion of networks, etc.

ReportConstituents• Billers• Finical Institutions
Request of open • Government and municipal
specifications
offices• IT venders (without right tovote)
Request ofpromotion

Users

Opinions

Membersof JAMPA

Open
specifications
Promotion

Promotion
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How to Pay a Bill?
< Case of a public utilities bill in Japan>○○‘Pay-easy’ acceptance markbiller id
Customer id
Confirmation number

With using the information,
Billers identify the payer andthe bill7

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How to Pay a Bill?（Cont.)
1. Mail the bill

PC

ATM, Internet BankingBankMultipaymentNetwork<Pay-easy service>
biller id5001

Mobile Customer id12345678900
06

Confirmation 7006
numberInquiry
Payer

ATMBiller

2. Inquire the information of the bill
3. Respond to the inquiry

4
Payee information： xx
Charge： ¥7.760

Pay

5. Payment
requestPayer
account

7. Notify the payment

6. withdrawal
Biller account8Confidential

A Scope for Future Services

 Expansion and sophistication in user channel-ATM-Mobile phone Penetration to local governments-Cost benefits-Match up Local governments and local banks

 Application for new digitalized service-e-Invoice

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System Overview
Financial Institutions

Payment receiving organizations

Telephone=R123456789

*0

#SEKR

MobileInternetＡＴＭ

TellerBillers

Multi Payment Network

Telephone
Banking Communication
serverCenterCommunication
serverNetwork (IP-VPN)
HostInternet
BankingCenter

Multi-payment
Network
SystemHostFI

Shared Center

HostFI
Host

Shared Center for small/mid billers
Communication
serverClearing

Communication
server

Payment receiving organizations

BQJ
systemterminal

Host10Confidential

Billers Using MPN
 National Government
Billers

items of payment

Ministry of Finance （Customs andTariff Bureau）

Trading Tax, etc.

National Tax Administration Agency

Self-assessed income tax, Corporation tax, Consumption
tax, Income tax withheld at the source, etc.

Ministry of Internal Affairs andCommunications（Telecommunications Bureau）

Radio wave utilization fee

Ministry of Health, Labor and Welfare（Labor Standards Bureau）

Labor Insurance premiums【地方公共団体】
Ministry of Health, Labor and Welfare
National pension premium, Welfare pension premium, etc.
（Pension Bureau)
Others through the Ministry ofFinance Accounting Center, Financial
Bureau, etc.

Administrative fees , Revenues from Accounting center, etc.

 Municipal Offices
A lot of municipal offices are using MPN for;automobile tax, light vehicle tax , fixed property tax, health insurance premium, etc.
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