Nihon Unisys and DNP to Offer Global Brand Direct Debit Payment Service

Nihon Unisys, Ltd (Nihon Unisys) and Dai Nippon Printing Co., Ltd. (DNP)have commenced the provision of necessary functions for the adoption and operationof debit cards bearing major global payment brand in Japan, such as the transactionprocessing, membership management and links to accounting systems, along withnight time service coverage. The partners are cooperating under an existingalliance in the area of global brand e-settlement services, and following the2015 launch of global brand prepaid cards will now offer a one-stop, total servicefor global brand direct debit service.

We are also pleased to announce that The Hokkoku Bank Ltd. (Hokkoku Bank)will launch a debit card with Visa payWave on April 1, 2016 as the first domesticuser.

[Service Launch]

The new service refers to a direct debit payment service operated on a globalbasis at member-stores of the global payment brands such as Visa, MasterCardand JCB. In principle, no screening is required at time of application as longas the prospective user maintains a bank account, and unlike prepaid cards itis not necessary to pre-charge the card. As the scope of usage is limited bybank balance, there are no concerns for overuse, and one feature of the newservice is that it is convenient and can be used with confidence. Financialinstitutions are promoting cashless settlements to users with little credithistory, such as younger people and seniors, and are focusing on global branddirect debit services as a way to revitalize bank accounts.

According to New Payment Report 2014, issued by Nihon Card Business Institute,cashless settlements comprised approximately 18% of the payment market in Japanin 2014. Despite such low usage levels, however, the Japanese government haspositioned the promotion of such settlements as a part of the growth strategy.And at present a public-private partnership is laying the groundwork for theirintroduction, boosting expectations amongst global payment brand direct debitfor the future of cashless settlements.

Against this backdrop, Nihon Unisys which boasts highly reputable missioncritical system development and operations know-how developed in the financialand aircraft industries, and DNP which maintains the top domestic track recordin the processing of global brand prepaid cards(2), have joined hands. In April2015, the partners launched a global brand prepaid card service, and in thislatest development have jointly established a common settlement platform forglobal brand direct debit service.

[Direct Debit Payment Service]  

This service offers basic functions including transaction processing, membershipmanagement and links to accounting systems, along with night time service coverage,and the creation and operation of web sites targeting members. For financialinstitutions, it is possible to adopt global brand direct debit services atlower cost and with a shorter lead time compared to instances of developingsimilar systems on an in-house basis.

In addition to system configuration and operation, Nihon Unisys and DNP helpfinancial institutions to reduce operational burdens by bundling together suchservices as smart card manufacture and personalization, and authentication serviceswhen cards are used in online shopping.

Financial institutions utilizing BankVision(3), the next generation open accountingsystem offered by Nihon Unisys, will be in a position to further reduce costsby communalizing interfaces with accounting systems, and via dedicated lineconnections with those systems.

The new service conforms to PCI-DSS(4), and operates in a highly secure environment.

[Adoption Case Study]

As the first domestic user of this service, Hokkoku Bank will launch a Visa-brandeddebit card with attached Visa payWave contactless payment functions on April1, 2016. The new card will allow for shopping at more than 38 million Visa participatingmerchants, including internet stores, on a 24/7 basis. Charges will be directlydebited from registered accounts at Hokkoku Bank and paid. Loyalty points willalso be granted depending on the usage amount. Looking ahead, Hokkoku Bank alsohas plans to issue a joint direct debit and cash card.

Hokkoku Bank card design

[Looking Ahead]

Nihon Unisys and DNP will expand global brand direct debit-related BusinessProcess Outsourcing and marketing support services. And apart from various globalbrand direct debit-related services, will also provide smart card manufactureand personalization, along with authentication and accounting system services.The partners will offer global brand direct debit-related services to financialinstitutions, aiming for total sales of 4.0 billion yen in the four year periodto FY 2019.

Nihon Unisys and DNP entered into a business alliance in August 2012, andare promoting Marketing Platform, a common strategy targeting corporate changewhereby marketing is conducted on a cross-company and cross-industry basis.We will focus on digital contents and digital commerce, in addition to next-generationpayments including this latest service, as priority areas.

*1 Visa payWave: A contactless payment solution offered by Visa Worldwide

*2 Since 2013, DNP has offered a service for managing global brand prepaidcard numbers, membership information, sales and outstanding balances.

*3 BankVision: Is an accounting processing system that utilizes existingaccounting systems, specialized operational know-how, and the latest IT skills,and runs in an open platform. The service was launched in 2007, has been adoptedby 10 banks, and has subsequently developed a reputation for high level safetyand robustness as a core banking system.

*4 PCI DSS (Payment Card Industry Data Security Standard): A security standardfor operators handling card numbers created by an organization established byglobal brands.

* BankVision is a registered trademark of Nihon Unisys, Ltd.

* Visa payWave is a registered trademark of Visa International Service Association.

* Other listed company names and product names are the trademarks or registeredtrademarks of their respective owners

* Product prices, specification and service contents mentioned in this newsrelease are current as of the date of publication. They may be changed at anytime without notice.