Tie-up with Alipay, A Major Chinese Electronic Payment Service Provider
Apr 04, 2016
TOKYO, Japan - April 4, 2016 - ORIX Corporation ("ORIX") today announced that it has established a business alliance with Alipay.com Co., Ltd., a major Chinese electronic payment service provider owned by Ant Financial Services Group ("Ant Financial"), to provide the Alipay service, an electronic payment service to BtoC businesses, such as retailers and restaurants, nationwide.
ORIX will utilize its nationwide network to acquire member stores for the Alipay service. As increasing demand from inbound foreign tourists visiting Japan is expected to continue, ORIX will support member stores' revenues growth by promoting the Alipay service which targets Chinese tourists in particular. Furthermore, ORIX will also introduce optional services such as payment terminal lease to minimize initial set-up costs necessary for the Alipay service.
Ant Financial was established in 2014. The company's core business is the Alipay service, which was initially introduced in 2004 for online transactions in China. As one of the major global payment service platforms, the Alipay service currently has more than 450 million registered users world-wide. In addition to its strong on-line payment services, the Alipay service has further expanded into face-to-face payment transactions via bar codes or QR codes displayed on users' smart phones at the 600,000 member stores in China and 50,000 member stores overseas.
Since January 2015 ORIX has been providing its own payment services to BtoC corporate customers, specifically the in-house prepaid card issuance system, LOOP+ Card1 . Furthermore, in August 2015, ORIX introduced the Flico2 service, a low cost remittance service for its corporate customers.
ORIX will continue to provide innovative payment services and other solutions to support BtoC businesses to achieve better sales growth, operational efficiency and cost reduction.
1 "LOOP+ Card," an in-house prepaid card issuance system which offers comprehensive services from service-designing to data marketing. Charges (prior deposits) increase the sales revenue, unlike electronic money formats and shared point cards, the full amount charged in advance to the prepaid cards will almost certainly generate sales for the company that uses the card.
2 "Flico," a low cost remittance service. ORIX acts as an intermediary for day-to-day remittances, such as purchases and payment of expenses. The remittance fee is fixed at 280 yen per transaction (including tax), irrespective of the amount remitted.
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 the lending, investment, life insurance, banking, asset management, automobile-related, real estate and environment and energy-related businesses. Since its first overseas expansion into Hong Kong in 1971, ORIX has spread its business globally by establishing locations in a total of 36 countries and regions across the world. Moving forward, ORIX aims to contribute to society while continuing to capture new business opportunities. 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, 2014 - March 31, 2015."
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