GMO Financial Gate & Soft Space to boost Japan’s cashless payment sector

By Gloria Mathias

GMO Financial Gate, Inc. (GMO-FG) has announced a capital alliance with Soft Space, the fintech-as-a-service (FaaS) company. This investment from GMO-FG precedes Soft Space’s planned Series C funding round, aiming to transform Japanese society into a cashless one.

This collaboration highlights a mutual commitment to promote the adoption of contactless and cashless payments by leveraging the unique strengths of both entities. GMO-FG is set to introduce Soft Space’s patented payment solutions to its existing markets and bank partners.

Conversely, Soft Space is set to benefit from GMO’s vast client network, potentially exploring new opportunities in transportation, hospitality, and the extensive food and beverage (F&B) sector, which currently operates predominantly using 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 inconvenience of carrying cash.

“Since the beginning of our collaboration 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 growth of Japan’s face-to-face cashless payment market,” stated Kentaro Sugiyama, CEO of GMO-FG.

“The capital alliance demonstrates GMO’s confidence in our business fundamentals and our plans to spur 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, empowering a wide range of sectors to adopt our payment solutions. Together with GMO, we move one step closer to realising Japan’s vision of a cashless society.”

This alliance between Soft Space and GMO-FG reflects their shared commitment to advancing Japan towards a cashless future, a vision that aligns with over a third of the country’s current spending habits. This shift promises significant benefits for traditional businesses, enhancing the widespread acceptance of cashless payments.