GMO Financial Gate, Inc. (GMO-FG) announced a capital alliance with fintech-as-a-service (FaaS) company Soft Space.
This investment by GMO-FG precedes Soft Space’s planned Series C funding round, with the goal of transforming Japanese society into a cashless society.
This partnership underscores the mutual commitment to advance the adoption of contactless and cashless payments by leveraging the unique strengths of both entities. GMO-FG is ready to introduce Soft Space’s innovative, patented payment solutions to its existing markets and banking partners.
Instead, Soft Space is set to take advantage of GMO’s vast customer network, potentially exploring new opportunities in transport, hospitality and the sprawling food and beverage (F&B) sector, which today operates mainly on cash. As Japan is a key destination for tourists worldwide, the convenience of using cashless payments is expected to encourage tourists to spend more by eliminating the hassle of carrying cash.
“Since the beginning of our partnership in 2018, Soft Space and GMO-FG have built a close relationship through the integration of Soft Space’s contactless payment services and GMO-FG’s payment network. With this capital alliance, we aim to further accelerate our cooperation and contribute to the development of Japan’s cashless face-to-face payment market,” said Kentaro Sugiyama, CEO of GMO-FG.
“The capital alliance demonstrates GMO’s confidence in the fundamentals of our business and our plans to drive contactless transactions in the Japanese market,” said Joel Tay, CEO of Soft Space. “The funding enables us to strengthen our platform and expand our presence across Japan, enabling a wide range of sectors to adopt our payment solutions. Together with GMOs, we are one step closer to realizing Japan’s vision of a cashless society.”
This alliance between Soft Space and GMO-FG reflects their shared commitment to moving Japan toward a cashless future, a vision that aligns with over a third of the country’s current spending habits. This change promises significant benefits for traditional businesses, boosting the widespread acceptance of cashless payments.