PROMOTION OF
EMBEDDED FINANCE
Transition from Installment Payments to Embedded Financethe so-called super apps, which combine a variety of functions
including payment, money transfers, and e-commerce. MARUIGROUP also provides such an app with its EPOS app, whichallows users to track their EPOS card usage while also offering
QR code payment services and applications for cumulative
investment, insurance, or even renewable energy plans.

Embedded finance is a term that refers to services provided by
non-financial companies that embed elements of financial
services into more traditional services.
Retailing, IT, and other non-financial businesses that are inconsistent contact with consumers are able to gain information
on and trust from customers. This close proximity to customers
creates situations in which customers may desire to purchasean item in the moment but not have the cash on hand to do so.
If a retailer can provide options to pay later for purchases aspart of its services, it is highly likely that a customer will make apurchase in such a situation. This is why we have recently been
seeing a rise in non-financial companies providing embedded
financial services that incorporate apps including payment
systems supplied by banks or fintech companies.
MARUI GROUP sets itself apart from its peers by being acompany that possesses both non-financial retailing functions
as well as fintech functions in the form of the credit and payment services offered by its EPOS cards. We also possessrobust in-house systems development functions, which are asignificant source of strength in that they enable us to swiftlyincorporate financial systems into our services. Another factor
behind the recent popularization of embedded finance has been

Embedded Finance Scheme

It could be said that MARUI GROUP has been providing embedded financial services since its inception. We got our start inselling furniture on installment plans. In other words, we
embedded the financial service of installment payments into
the retailing service of furniture sales.
In the past, installment payments were primarily used fordurable goods like furniture. As the times changed, however, thescope of products for which such services are used expanded
to include apparel and eventually all of the products we consume as part of our daily lives. MARUI GROUP’s business too
has continued to evolve together with the times, while remaining true to its business model of combining finance and retailing. A particularly noteworthy step in this evolution came withthe 2006 launch of the EPOS card, a card affiliated with theinternational brand of Visa Inc. This card can be used for applications other than shopping at Marui and Modi stores, making

it a more central component of customer lifestyles and driving
consistent growth in transaction volumes.
Even if the products we offer change, the underlying assets
used to offer these products remain the same. It is these assetsthat allow MARUI GROUP to take an embedded financeapproach. These assets were used to provide products that are
ideal for installment payments, like furniture and other durable
goods as well as apparel, and are now employed to offer services ranging from dental payment plans, small-sum securities
investments, and rent guarantees. Similarly, the multipurpose
EPOS card can be used anywhere and at any time, not just tomake payments in stores.
MARUI GROUP is passionate about continuing to generateprime examples of embedded finance by utilizing its assets,
namely, systems that incorporate EPOS cards to allow customers
to use their card on any occasion when they might want to makea payment. At the same time, we will seek to generate our desired
impact based on the themes of creating a brighter tomorrow for
future generations and contributing to individual happiness.

Consumers

Non-Financial Company
Provision of services with embedded financial elements

Fintech Company
Investment

Payment

Insurance

Financing

EPOS Cards

Driver License Acquisition Financing PlanThrough affiliation with the international Visa brand, MARUI GROUP isable to offer multipurpose EPOS cards that can be used for a much wider
range of applications than its prior in-house cards, which were limited touse in our stores. EPOS cards are seeing consistent growth in transaction
amounts and are therefore expected to continue to function as a cornerstone of our embedded finance initiatives.

The driver license acquisition financing plan of Epos Card Co., Ltd., is aservice offered through partnership with driving schools that can be used
when one is signing up for courses at such schools. Designed for customers seeking to obtain a license as quickly as possible, we allow
customers to pay their driving school fees, which can be quite high inJapan, at their own pace in as many as 36 installments.

EPOS card application via EPOS Net (in Japanese only)

FINANCIAL INCLUSIONFINANCIAL INCLUSION

Embedded Finance

Evolution from Furniture Installments toEPOS Cards and Beyond

Driving schools accepting driver license acquisition financing plan offeredthrough EPOS cards (in Japanese only)

MARUI GROUP’s Growing Range of Embedded Financial Services

Installment program for purchasing Apple Inc. products(see pages 38–39)
EPOS Dental Credit (see pages 40–41)
tsumiki cumulative investment services
EPOS Card Insurance
ROOM iD rent guarantee service (see pages 36–37)
Driver license acquisition financing plan offered through EPOS cards
Issuance of EPOS cards

EPOS Card Insurance

tsumiki Co., Ltd.

Through EPOS Card Insurance, we help EPOS cardholders choose theinsurance plans that best match their needs with a wide range of health,illness (cancer), and other insurance plans offered exclusively to cardholders that serve to alleviate everyday concerns. Moreover, when one
pays their premiums with their EPOS card, they are able to accrue EPOS
points, which can also be used to make premium payments.

Established in 2018, tsumiki Co., Ltd., offers Japan’s first cumulative
investment service that allows for payments via credit cards. This service
makes it possible to conduct cumulative investments using one’s EPOS
card and to allocate accrued EPOS points toward steady, gradual assetbuilding. The service of tsumiki was also the first in the industry to allow
for monthly investments of ¥100,000 under Japan’s new NISA savings
account scheme.

Issuance of Japan’s first credit card
Founding business of selling furniture on installment payments

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Insurance and other available plans (in Japanese only)

Forward-looking options for asset building (in Japanese only)

35