Net Protections Holdings

Basic Information

Stock Code: 7383
Industry: Other Financial Services
Category Detail: Consumer & Business Finance
Prefecture: Tokyo
Establishment Year: July 2018
Listing Year: December 2021
Official Website: https://corp.netprotections.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Members, Wellnet, Billing System, GMO Payment Gateway, Synchro, GMO Financial Gate, ROBOT PAYMENT, Digital Garage, Transaction Media Networks, Net Stars, Open G

Overview

Net Protections Holdings is a company established in 2018 with BNPL payment services as its mainstay, rapidly growing in the uncollected risk-guaranteed postpaid financial domain.

Current Situation

Net Protections Holdings recorded a net profit of 175 million yen and total assets of 17.43 billion yen for the fiscal year ended March 2024, continuing steady growth. Its flagship BNPL (postpaid) payment service is uncollected risk-guaranteed type, boasting a broad customer base from SMEs to major corporations. Listed on the Tokyo Stock Exchange Prime Market in 2021, it has raised its profile in the industry and built competitive edges in the digital payments field. Technology development is advancing payment platform enhancements under the direction of CTO Shiro Suzuki. It is also pursuing sustainability, regional contributions, and overseas expansion including the establishment of a Taiwan subsidiary. Moving forward, fintech innovations and market expansion will drive growth, with business diversification at the core of its strategy. Amid intensifying competition, bolstering customer value and service differentiation are key challenges.

Trivia

Interesting Facts

Uncollected risk-guaranteed postpaid service is one of the few models domestically.
Achieved Tokyo Stock Exchange Prime listing in just 3 years since founding, a rapid-growth firm.
CTO Shiro Suzuki is a prominent engineer contributing to payment industry innovations.
Postpaid payments offered balance convenience and security for consumers.
Taiwan subsidiary establishment pioneers Asian payment market expansion.
Fintech firm backed by Advantage Partners.
Its payment services closely collaborate with diverse industries.
Achieves advanced tech development with a lean, elite workforce.
Frequently featured in Nikkei news for personnel changes and executive shifts.
Intense competition with numerous rivals in the payment services industry.

Hidden Connections

Strong ties to credit card industry through investment from JCB.
Advantage Partners deeply involved in stock transfer for capital stability.
Technical lead involved in founding multiple fintech ventures.
Taiwan entry serves as model case for Japanese firms' Asian expansion.
Partners with convenience stores nationwide to promote postpaid payments.
Diverse payment brands specialized in installments and convenience store payments.
Customer point rewards differentiate from competitors.
Employs EY ShinNihon LLC for financial audits to ensure reliability.

Future Outlook

Growth Drivers

Increasing postpaid demand from domestic and international EC market growth
Accelerating cashless shift and rising needs for convenient payments
Improved credit management via AI and big data utilization
Business expansion in overseas markets and multi-currency support
Expansion of reliable credit guarantee services in low-interest environment
Customer base growth through partnerships
Strengthened collaboration with government digitalization policies
Revenue diversification via new service development
Enhanced risk management through advanced personal credit info utilization
Brand enhancement via sustainability-focused market response
Competitive edge from adapting to strengthened consumer protection laws
Pursuit of mobile payments and smart device utilization

Strategic Goals

Secure top domestic market share in postpaid payments
Achieve over 30% revenue from overseas markets
Sophisticate credit systems using AI and data analytics
Further strengthen ESG (Environment, Social, Governance) initiatives
Create new financial services through partner collaborations
Provide safe and convenient payment environments for consumers and businesses
Secure and develop talent via improved employee satisfaction
Surpass 1 billion annual payment transactions processed
Build flexible compliance framework for regulatory changes
Establish sustainable revenue model and continue growth

Business Segments

Payment Services for EC Businesses

Overview

Provides postpaid payments and guarantee services for EC businesses to boost sales and reduce uncollected risks.

Competitiveness

Strength in uncollected risk guarantees

Customers

SME EC businesses
Major EC platforms
Mail-order businesses
Online retailers

Products

NP Postpaid Service
Payment Agency Solutions
Credit Guarantee

Payment Support for Retail and Dining

Overview

Offers diverse payment solutions to streamline in-store payments and enhance customer satisfaction.

Competitiveness

Support for diverse payment methods

Customers

Retail chains
Restaurants
Convenience stores
Franchise stores

Products

NP Convenience Store Payments
Point Reward Services
Installment Payment Services

Corporate and Business Payment Solutions

Overview

Deploys solutions for corporate billing, collection support, and credit risk management.

Competitiveness

Credit management leveraging financial expertise

Customers

Corporate entities
Wholesalers
Service providers

Products

NP Direct Debit
Credit Guarantee
Payment Consulting

Overseas Expansion Support Services

Overview

Leverages Taiwan base to provide international payment support centered on Asia.

Competitiveness

Proven track record and expertise in international payments

Customers

Overseas subsidiaries of Japanese companies
EC businesses expanding abroad
International payment providers

Products

NP Global Payments
Multi-currency Postpaid

Technology Development and Platform Operations

Overview

Develops and operates advanced payment platforms, supporting system integration via API linkages.

Competitiveness

Advanced IT technology and payment expertise

Customers

In-house group
Partner financial institutions
Affiliated companies

Products

Payment Platform
API Integration Services
Data Analysis Services

Marketing Support Services

Overview

Supports campaign design like point rewards for sales promotion and customer analysis.

Competitiveness

Customer data utilization capabilities

Customers

EC businesses
Retailers
Food service industry

Products

Point Reward Campaigns
Value-Added Service Planning
Customer Analytics Data

Risk Management and Credit Screening Services

Overview

Provides secure payment environments through credit risk monitoring and fraud detection.

Competitiveness

Advanced credit management using AI

Customers

Merchant stores
Financial institutions
Insurance companies

Products

Credit Screening System
Risk Monitoring
Fraud Detection Solutions

Customer Support Solutions

Overview

Builds comprehensive support systems for payment users and merchants to maintain trust.

Competitiveness

Rapid response by specialized staff

Customers

Merchant stores
Consumer customers

Products

Inquiry Handling
Trouble Resolution Support
User Education Programs

Fintech Partnerships

Overview

Advances strategic alliances with fintech firms leveraging technology and customer base.

Competitiveness

Collaboration capabilities with diverse partners

Customers

Financial institutions
Digital platform companies
IT service companies

Products

Technology Collaborations
Joint Development Projects
Market Development Support

Education and Training Services

Overview

Training programs on latest payment knowledge and regulatory compliance for merchants and employees.

Competitiveness

Specialized educational expertise

Customers

Client companies
Internal staff

Products

Payment Service Training
Compliance Education

Consulting Services

Overview

Comprehensive consulting from payment business launch to operations.

Competitiveness

Abundant industry knowledge and track record

Customers

New entrants
Existing service improvers

Products

Business Strategy Support
Risk Management Advice
System Implementation Support

Postpaid Payment Technology Provision

Overview

Provides flexible postpaid payment APIs and technical support for diverse industries.

Competitiveness

Flexible and scalable technology infrastructure

Customers

Merchant stores
Fintech companies

Products

Payment API Provision
System Customization

Competitive Advantage

Strengths

Pioneer in uncollected risk-guaranteed postpaid services
Robust technology foundation and CTO-led development capabilities
Stable funding and solid financial base
Strong provision of diverse payment methods
Credibility from Tokyo Stock Exchange Prime listing
Broad customer base payment network
Foothold in Asian expansion
Flexible and highly scalable platform
Advanced data analytics and risk management
Operational expertise backed by extensive track record
Comprehensive customer support system
Strategic partnership building capabilities
Growth-oriented and agile market response
Design focused on consumer convenience
Experienced management team

Competitive Advantages

Unique model guaranteeing uncollected risks to boost sales promotion effects
High reliability and security standards in payment services
Flexibility to meet needs across industries and scales
Broad distribution channels covering online and offline
Enhanced brand power from Tokyo Stock Exchange Prime listing
Sophisticated credit screening system using AI
Accelerated global expansion via overseas bases
Customer base expansion through cross-selling with partners
Provision of marketing support services for customers
Talent acquisition enabled by attractive work environment
Rapid service improvements via technology investments
Swift compliance with regulations like Financial Services Agency
Business insights provision based on rich payment data
Utilization of strong agency networks
Improved brand trust and customer loyalty

Threats

Intensifying market competition from rivals entering postpaid payments
Business restrictions or cost increases from regulatory changes
Deteriorating funding environment due to financial market uncertainty
Expanded losses from surge in consumer credit risks
Service disruption risks from cyberattacks or system failures
Declining consumption and sales from economic downturn
Competitive pressure from technological innovations by emerging fintechs
Local risks and cultural barriers in overseas expansion
Loss of social credibility from customer data leaks
Delays in responding to diversifying payment needs

Innovations

2021: Tokyo Stock Exchange Prime Market Listing

Overview: Achieved new listing on the Tokyo Stock Exchange Prime Market, strengthening fundraising and visibility.
Impact: Enhanced brand power and expanded investor base

2021: Established Local Subsidiary in Taiwan

Overview: Established NP Taiwan, Inc. to build a foundation for business expansion in Asia.
Impact: Established foothold for international expansion

2022: Introduced AI-Powered Credit Screening System

Overview: In-house developed and deployed AI-integrated credit screening system to improve accuracy.
Impact: Reduced credit risks and promoted transaction growth

2023: Launched Point Reward Campaign

Overview: Introduced point rewards for postpaid payment users to boost satisfaction.
Impact: Increased user base and strengthened loyalty

2024: Enhanced Payment API Integration

Overview: Significantly upgraded API services compatible with diverse merchant systems.
Impact: Promoted acquisition of new merchants

Sustainability

Promoting paperless operations in payment processes
Conducting financial education support for local communities
Promoting diversity among employees and workstyle reforms
Strengthening information security and improving transparency
CSR activities including disaster relief and volunteer support