Recruit MUFG Business Builds New Financial Infrastructure

Payments Brand COIN+ Offers All Enterprises 0.99% Handling Fee
Embedded in AirWALLET Launched Today and in OEM Partnership with Ryohin Keikaku

Recruit MUFG Business, known as RMB and a subsidiary funded by Recruit Co., Ltd. and MUFG Bank, Ltd., is building new financial infrastructure, beginning with payments brand COIN+. COIN+ serves as a business platform for enterprises of all stripes, offering an effective handling fee of just 0.99% based on the pre-tax amount. AirWALLET^*1, RMB’s app for managing digital accounts equipped with the COIN+ payment features, is now available for download.

In addition, RMB has finalized an OEM^*2 partnership with Ryohin Keikaku Co., Ltd. that pairs COIN+ with Ryohin Keikaku’s Muji Passport app. Muji Passport will begin offering COIN+ features in Spring 2022 for use at around 250 Mujirushi Ryohin stores.

AirWALLET: Seamless payments app’s 0.99% handling fee ideal for SME retailers

The service kickstarting the new financial infrastructure is AirWALLET, RMB’s app for managing digital accounts and payments. AirWALLET users can seamlessly send money, as well as deposit and withdraw funds in their bank accounts all free of charge. Embedding COIN+ in AirWALLET means users can also make QR code payments. At retailers accepting payment methods powered by COIN+, users can pay with funds from a digital account as well.

(Learn more about AirWALLET: https://airwallet.jp (Details in Japanese))

With a handling fee of just 0.99% before tax, COIN+ gives retailers of all sizes a welcome alternative to the 3% to 5% fees that cashless payment services typically charge.

Why COIN+ handling fees are so low:
1. Direct settlement routes to the bank:Since both Recruit and MUFG Bank own a stake in and operate RMB, COIN+ can route payments directly through the bank, bypassing intermediary financial institutions.

2. Excludes loyalty points and other promotional expenses from handling fee: Other payment brands typically charge handling fees that pass the burden of issuing loyalty points on to the company or store using the service. The COIN+ handling fee is even lower because it excludes those promotional expenses.

COIN+ payment brand's OEM partnerships to integrate payment features in companies' loyalty apps

RMB is working on COIN+ OEM partnerships with other companies as well. Any enterprise with its own loyalty app can embed COIN+ to add payment options. Users can make payments directly through the enterprise’s loyalty app and still take advantage of that app’s coupons and other special offers.

Few other OEM partnerships with pre-existing apps offer QR payment functionality. But many enterprises — especially large companies and retailers — want to add payment options like this to their apps to offer customers greater convenience while still delivering services and shopping experiences in their own ways. OEM partnerships that integrate COIN+ help support that experience all while keeping the handling fee at just 0.99% of the pre-tax amount.

Receiving points is a huge consideration for customers of payment brands but COIN+’s goal is to provide payment features widely. Retailers and companies using COIN+ can therefore offer users various benefits through their apps and services with few percentage of handling fee saved by using COIN+. RMB hopes that a full range of options from loyalty apps that include payment features will enhance customer services.

Partnership with Ryohin Keikaku's Muji Passport set to start in Spring 2022

Ryohin Keikaku’s Muji Passport will start using COIN+ in Spring 2022, enabling QR payment services at around 250 Mujirushi Ryohin stores. Muji customers can use familiar apps to purchase items where they usually shop.

Background: Market environment and circumstances for SMEs/large enterprise customers

RMB's mission is to build new financial infrastructure so that enterprises can run their businesses the way they like.

Code-based payments is a growing market within the cashless payments realm and is projected to expand. Over six trillion yen in code-based payments were made in FY2020 alone. By FY2025, that figure is expected to exceed 12 trillion yen^*3 The Japanese government’s push to encourage digital transformation is adding significant momentum to the drive to adopt code-based payments.

Consumers benefit in many ways. For example, they can leave their cash at home or in the bank and use contactless payments instead — an increasingly valued option during the pandemic. Demand is also expected to surge when inbound tourism to Japan rebounds and international visitors drive up the use of contactless payments.

At the same time, business operators and retailers should save time and effort in their everyday accounting. The typical 3% to 5% handling fees impose a heavy burden on small- to medium-sized companies and retailers (SMEs). Many business owners want to minimize that expense and redirect the freed-up funds to product development and employee salaries.

According to the 2016 Economic Census for Business Activity, SMEs (including sole proprietorships) account for a staggering 99.7% of all companies in Japan. That is why the economic fortunes of SMEs directly correlate to the ups and downs of the Japanese economy and its large enterprises. RMB wants to help business owners run their operations profitably by keeping handling fees to the bare minimum.

Handling fees are also an issue for large companies and retailers (large enterprises). Many of them have described the challenges of finding payment methods that fully leverage their customer bases. RMB has also listened to these large enterprise concerns.

RMB wants to help both SMEs and large enterprises create an environment that organically stimulates their business activities. RMB will continue developing services to ensure that all enterprises, large and small, can keep their businesses running at a profit.

Recruit MUFG Business Company Profile

Name: Recruit MUFG Business
Established: December 20, 2019
Capital: 100 million yen
Business description: Provides digital account management and payments service AirWALLET and payments brand COIN+
Location: Sumitomo Fudosan Yaesu Bldg. 5F, 2-4-1 Yaesu, Chuo-ku, Tokyo
(Registered head office) 8-4-17 Ginza, Chuo-ku, Tokyo
Shareholders: Recruit Co., Ltd., MUFG Bank, Ltd.
Website: https://www.recruitmufgbiz.co.jp (in Japanese)

^*1: In order to offer AirWALLET, Liquid, Inc.’s LIQUID eKYC — a simple and convenient personal ID functionality — is utilized.
^*2: In this context, “OEM” refers to payment features provided in an app belonging to a large retailer, restaurant operator, or other company.
^*3: Source: “Survey on Japan’s Code-Based Payments Market,” Yano Research Institute Ltd. (released October 21, 2021)

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