Confidential

Introduction of Multi Payment Network “Pay-easy”

JAMPA (Japan Multi-Payment Network Promotion Association)

May,2014

Confidential

1

What is Multi Payment Network “Pay-easy” ?

Multi Payment Network contributes smooth money collection in.

National tax

governmental fund

-asset tax

-import tax

-pension premium

-patent registration fee

Local tax -auto motive tax

-consumption tax

Bill payment -telecom

-e-commerce

Confidential

What is Multi Payment Network “Pay-easy”?

Banks Private

companies

Financial institutions

Postal Bank Public offices

Local governments

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

Invested and developed by a private system company

Uses unique bill’s ID for user identification

Bank of Japan

2

Confidential

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.

3

Confidential

Delivery Channels of MPN

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

Internet banking, mobile banking Approximately 1,500 financial institutions all over Japan, which means

almost all Japanese financial institutions, are providing MPN services

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

4

Confidential

Amount of Money and Transactions in ‘Pay-easy’

Trillio

n JP

Y

Millio

n tra

nsa

ction

s

5

FY2013 Total transaction:

61.8 million

FY2013 Total amount: 9.7 trillion JPY

(= 96 Billion USD)

0.69 0.77 0.84 1.01 1.07

1.14 1.17 1.21 1.28 1.38

3.89 4.69

5.36

6.14

7.24

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2009 2010 2011 2012 2013

National treasury fund

Local government fund

Private company charge

24.94 25.74 27.49

34.92 37.09

8.67 8.68 9.49

10.22 11.43

4.63 7.07

8.78

11.04

13.26

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013

National treasury fund

Local government fund

Private company charge

Confidential

JAMPA (Japan Multi-Payment Network

Promotion Association)

Governance of MPN

JAMMO (Japan Multi-Payment Network

Management Organization)

Constituents • Finical Institutions • Billers also join as guests

Constituents • Billers • Finical Institutions • Government and municipal

offices • IT venders (without right to

vote)

Mission • Development and

management of networks • Decision of specifications, etc.

Mission • Gathering opinions on

specifications of networks • Promotion of networks, etc.

Non -members of JAMPA

Members of JAMPA

Users

inquiry

Report

Request of open specifications

Request of promotion

Open specifications

Opinions

Open specifications Promotion Promotion

Promotion

6

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.

Confidential

How to Pay a Bill?

< Case of a public utilities bill in Japan>

With using the information, Billers identify the payer and the bill

○○

biller id

‘Pay-easy’ acceptance mark

Customer id

Confirmation number

7

Confidential

Bank

Biller

Multi payment Network

7. Notify the payment Payee information： xx Charge： ¥7.760

Pay

2. Inquire the information of the bill

3. Respond to the inquiry

1. Mail the bill

<Pay-easy service> biller id

Customer id

Confirmation number

Inquiry

7006

1234567890006

ATM, Internet Banking

Payer account

Biller account

4

5001

5. Payment request

PC

Mobile

ATM Payer

How to Pay a Bill?（Cont.)

6. withdrawal

8

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

9

Confidential

System Overview

Telephone Banking

Internet Banking

Center

Communication server

Host

Multi-payment Network System

Clearing

Shared Center for small/mid billers

FI

Teller

ＡＴＭ

Internet

Mobile

Telephone

FI

Shared Center

Host terminal

R

=

1

4

7

2

5

3

6

8 9

# 0 *

SEKR Center

Financial Institutions Billers Multi Payment Network

Payment receiving organizations

Payment receiving organizations

Communication server

Host

Host

Host

Communication server

Communication server

Network (IP-VPN)

BQJ system

10

Confidential

Billers Using MPN

National Government

【地方公共団体】

Billers items of payment

Ministry of Finance （Customs and Tariff 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 and Communications（Telecommunications Bureau）

Radio wave utilization fee

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

Labor Insurance premiums

Ministry of Health, Labor and Welfare（Pension Bureau)

National pension premium, Welfare pension premium, etc.

Others through the Ministry of Finance Accounting Center, Financial Bureau, etc.

Administrative fees , Revenues from Accounting center, etc.

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

Municipal Offices

11