Digital Garage acquires e-money issuer PocketChange
Digital Garage has acquired additional shares of Pocket Change, making it an equity method affiliate of Digital Garage. At the same time, Digital Garage has concluded a capital and business alliance with JCB, a shareholder of Pocket Change, and the three companies have also signed a capital and business alliance.
Digital Garage, Pocket Change and JCB have worked together for some time to build the Shibuya Ward digital local currency "HachiPay" app, contributing to the promotion of the smart city that Shibuya Ward is aiming for. This time, the three companies have signed a new capital and business alliance agreement to seamlessly integrate and strengthen the products they own, making it easier than ever to develop and introduce original electronic money and build unique economic zones, accelerating the promotion of cashless and digital transformation for more businesses, including communities such as universities and local governments, service providers such as barber shops and restaurants, and retail businesses.
Background
Since its establishment in December 2015, Pocket Change has aimed to democratize cashless payments, starting with a kiosk terminal service that allows users to exchange leftover foreign currency from overseas trips for electronic money, and then developing services such as "Pokepay," which allows anyone to create their own economic sphere by building their own original electronic money. Since 2016, the Digital Garage Group has been supporting and collaborating with Pocket Change through investments made through DG Ventures. As part of this, the Digital Garage Group has also worked with JCB, a shareholder of Pocket Change, to contribute to the promotion of the smart city that Shibuya Ward is aiming for through the construction of the digital local currency "Hachipay" app. In addition, by providing an electronic money issuing platform for the "University Co-op App," the Digital Garage Group plays a central role in promoting cashless payments on the campuses of approximately 190 universities that are members of the University Co-op Business Union.
Digital Garage's decision to make Pocket Change an equity method affiliates aims to further utilize the resources and know-how of both companies and provide a wider range of comprehensive payment solutions to our mutual customers. In addition, the capital and business alliance with JCB, which has been a shareholder of Pocket Change for a long time, allows all three companies to jointly work on the promotion and expansion of their businesses, as well as on strategy planning and policy promotion to create business synergies between the three companies.
In the future, by leveraging the payment service assets of the three companies, Pocket Change's original electronic money construction platform, which can be used for in-house prepaid cards, in-house points, and coupon tickets in the retail and service industries, as well as local currencies and premium gift certificates in public organizations, will be added to existing payment services. In addition to providing consumers with a variety of payment methods, businesses will be able to strengthen customer engagement by issuing their own digital value (prepaid points, coupons, coupons, etc.).
Digital Garage Group will continue to strive to achieve the goals of its medium-term management plan early through business strategies, including M&A, under its group strategy "DG FinTech Shift" centered on its payment platform, and will contribute to the realization of a safe, secure, and convenient cashless society.
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