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March 25 , 2013
  • Rakuten Inc.

Rakuten Smartpay Credit Card Transaction Service for Small Businesses and the Self-employed can now be Used in Over 100 Smartphone and Tablet Devices

More convenient transactions with upgraded user environment

TOKYO, March 25, 2013 - Rakuten Inc. (JASDAQ: 4755) announced today that the Rakuten Smartpay Service for credit card transactions on smartphones, tablets and other mobile devices is now available on 102 different devices. The service upgrade was made today following compatibility test of the dedicated apps* with new smartphones and tablets. 

Launched by Rakuten in December 2012, Rakuten Smartpay enables users to conduct credit card transactions on their smartphones, or tablet devices using a dedicated card reader. A major feature of the service is the low initial fee (including card reader and shipping) of 2,980 yen including tax. Moreover, the processing cycle is short – as soon as the next day in some cases – and if a user designates a Rakuten Bank account, there are no fees. Application, screening, results notification and shipping of the card reader are completed in as few as three business days. There are no monthly fees and the app itself is free. It can be used by a wide range of business sectors, especially small businesses and the self-employed who have been dissuaded from introducing Credit Authorization Terminals due to high initial cost and lengthy settlement cycles.    

Rakuten has expanded the range of compatible devices to 102, so that merchants can use the Rakuten Smartpay service with very little additional investment and using the wide range of smartphones and tablets they already own. The list of compatible devices can be found attached. 

Rakuten is harnessing its group synergies: the initiative to increase uptake of Rakuten Smartpay by merchants is a collaboration among Rakuten Ichiba, Rakuten Travel, Rakuten Delivery and its other business arms. It will continue to offer highly convenient services to small businesses and the self-employed across sectors such as restaurants and bars, accommodation providers and delivery services, where credit card transaction systems are not frequently seen.

 【Affiliated merchant】 
URL: http://smartpay.rakuten.co.jp/case/

ZONE (PC Repair, Tokyo): Mobile computer repair service in the Kanto region. Previously used a credit card imprinter that transferred the raised characters on credit cards onto a sheet, but this meant it took around 20 minutes for the transaction to go through. Started with 2 employees using Rakuten Smartpay to be used on mobile Android devices which require initial cost of just 2980 yen, preparations are underway to enable Smartpay to be used by all sales staff due to the positive response of customers to the short transaction time.

●ThreePetals (Fashion, Tokyo): Vintage shop in Daikanyama area. Many of the expensive purchases in the 10,000 to 30,000 yen range are often made by credit card. As the Rakuten Smartpay processing cycle is “next day,” as opposed to the usual 2-4 weeks for credit card transactions, cash flow has improved and purchase can now be done more smoothly.

●Kimono shop Kasama (Fashion, Saitama Pref.): A kimono specialist store established in 1910. First used Rakuten Smartpay at an exhibition event in Daikanyama in February 2013. Only found out about the service just before the event, but was able to use it over the weekend of the event because the card reader arrived immediately after the online application was made.

●Standing Bar Ryu (Drinking Establishment, Kanagawa Pref.): A bar three minutes’ walk from Yokohama station. Previously dealt in cash only, but about five customers per month were requesting credit card payment. After bringing in Rakuten Smartpay, there was a positive response from groups of customers paying one large sum together and overall turnover at the bar has grown by around 10%.

Kozozushi Group Chagetsu, Yoga Branch (Delivery, Tokyo): A Rakuten Delivery merchant. In many cases such as delivering sushi to parties or meetings, customers wished to settle their costly orders by credit card, but the merchant could only accept cash payments due to the high cost of mobile terminals. Since introducing Rakuten Smartpay, delivery staff have readers attached to their smartphones, which allow for smooth transactions even in the case of expensive orders.

* Rakuten Inc. used a third-party service to conduct independent verification of device compatibility.

 

Summary of the Service

■Name of service: Rakuten Smartpay     URL: http://smartpay.rakuten.co.jp/

■Price: 2,980 yen (incl. tax) ※Initial fee (including card reader and shipping)

■Compatible devices: 102 (as of March 25)     URL:  http://smartpay.rakuten.co.jp/specs/

■Features:

    1.   Low initial fee
          Initial fee (including card reader and shipping) of 2,980 yen (incl. tax)

    2.   Quick processing cycle
         Automatic next day settlement, and no processing fees if Rakuten Bank account is
         designated. Accounts other than Rakuten Bank accounts can receive payments the
         next business day upon transfer instruction

    3.   Prompt service initiation
         Application, screening, results notification and shipping of the card reader are
         completed quickly. Card transactions can begin in as few as three business days

    4.   Flat transaction fee of 4.9%
         Transaction fee is 4.9% regardless of industry or scale of business

    5.   Portable
          As transactions are made by smartphone or tablet, the system does not require
          plugging in and is easy to carry around. Enables credit card transactions in all kinds
          of places, whether at the customer’s door, away from the cash register, or even on
          the street

    6.   Secure
           Encrypts credit card information with a secure design that does not leave any data on
           the card reader or device. Adopts the DUKPT key management scheme
           recommended by PCI-PTS

    7.   Compatible with iOS and Android
           Compatible with both iOS and Android OS. Eesy to use on your own smartphone
           or tablet

■Specifications and functions

Card reader
 ・W27mm×H27mm×D14mm
 ・Weight 12g, internal lithium battery
 ・Life: Approx. 10,000 transactions
 
Security
 ・No stress as data is not stored on card reader, app, or smartphone after use
 ・Design compliant with smartphone transaction security guidelines
 ・Adopts the DUKPT key management scheme recommended by PCI-PTS
 
App
 ・Works with iOS/Android. iOS: 4.3 or later, Android OS: 2.3-4.2
 ・Major functions: Credit card transactions, signature, receipting, transaction
  record, transaction cancellation
 ※Details of compatible device types here → http://smartpay.rakuten.co.jp/specs/
 
Credit cards accepted
 ・Visa and MasterCard international brands
 ※ Rakuten credit cards accepted regardless of brand (Visa, MasterCard, JCB)
 
Management functions
 ・Transaction records/cancellation, daily turnover, payment request, merchant
   management, user management
 
Settlement of transaction
 ・Next day settlement with Rakuten Bank, no processing fees
 ・Settlement next business day upon transfer instruction for non-Rakuten Bank
   accounts. Fee is 210 yen (incl. tax) 

■Price:
Initial fee
 ・2,980 yen (incl. tax)
 
Monthly fees
 ・Basic charges  None
 ・Transaction fees  4.9% of total transaction

※Android is a trademark or registered trademark of Google Inc.

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