Launch of a Sales Promotion Support Service Using an In-house Prepaid Card Issuance System
Supporting Sales Growth at Small, Medium-sized and Large B2C Business Operators
Jan 05, 2015
Tokyo, Japan - January 5, 2015 - ORIX Corporation (TSE: 8591; NYSE: IX), a leading integrated financial services group announced today that it will launch a sales promotion support service using the LOOP+ (Loop Plus) Card, ORIX's in-house prepaid card issuance system for business to consumer (B2C) business operators such as retailers and restaurants nationwide from January 5, 2015. The system will enable business operators to issue prepaid cards under their proprietary, original brands.
In-house prepaid house cards represent a unique form of prepaid electronic money issued by business operators for use only at their respective business establishments. Unlike electronic money formats and shared point cards associated with transportation companies and others, the full amount charged in advance to the prepaid cards will almost certainly generate sales for the company that uses the card. Furthermore, by providing card users with shopping points and other unique premium benefits, these operators will be able to encourage card users to visit their business establishments regularly, and to build customer loyalty. The cards will also serve as an effective means of targeting new customers and increasing spending per customer through data marketing based on customers' card usage data and information about their personal attributes. Looking ahead, the number of business operators that will introduce these prepaid card services is expected to continue increasing, with the size of the market for prepaid settlement services projected to expand from approximately \4.8 trillion in fiscal year 2012 to approximately \9.0 trillion in fiscal year 2017*1.
ORIX will provide the support needed to establish a sales promotion system using prepaid cards, ranging from designing services to planning promotions, issuing cards, managing balances and more. Business operators will be able to introduce these services while holding down upfront costs as no in-house system development will be needed. ORIX will also help to expedite convenience for card users and to expand the sales of the business operators through such means as supplying push-type sales promotion and information provision functions linked to the Internet, smartphones and other channels according to customer requests.
ORIX supports B2C business operators expand their network of business establishments through financing and equipment procurement by providing financial services ranging from property to equipment leases as well as the rental of electronic settlement-related devices using tablets. Through this service, ORIX intends to serve the diverse needs of business operators by supporting their growth on the sales front, while expanding into services such as data marketing-based consulting services by amassing related expertise going forward.
*1 Source: 2013-2014 Electronic Settlement / E-commerce Settlement Services: Current Trends and Market Prospects, Yano Research Institute Ltd.
■ Service Diagram (LOOP+ Card)
・ Business operators issue proprietary in-house prepaid cards using the in-house prepaid card issuance system supplied by ORIX
・ ORIX supplies dedicated card devices, POS systems and other equipment through sales or leasing according to the requests of business operators.
・ Customers settle payments using cards issued by physical and online stores.
・ Business operators are able to confirm the status of customer card usage by aggregated amounts on a daily and monthly basis, and are able to provide premium benefits according to the amount of payments made by customers, frequency of card use, or time of visit such as birthday.
・ ORIX provides business operators with information about examples of sales promotion initiatives using prepaid cards, and push-type sales promotion techniques according to customer requests.
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses. Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 35 countries and regions across the world. ORIX celebrates its 50th anniversary in 2014 and moving forward it aims to contribute to society while continuing to capture new business opportunities and sustain growth by promoting acceleration of its corporate strategy "Finance + Services." For more details, please visit our website: http://www.orix.co.jp/grp/en/
Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2013 - March 31, 2014."
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