A Second Appeal to Authorities in 20 Days: "Please Regulate"
More Flexible Than Card Companies in Simple Payments...
"Redefine the Industry"
Electronic Payment Gateway (PG) companies have once again sent a similar message 20 days after demanding that financial authorities "actively regulate" card companies for shifting fee losses onto them. They argued that it is urgent to improve the perception of PG companies not only as intermediaries between card companies and merchants but also as partners supporting various businesses such as simple payments. They requested active regulation of PG companies by authorities as well as improvements in social awareness.
On the 11th, eight PG industry companies summarized the current challenges and demands of the PG sector in a joint press release, stating that "it is necessary to expand and redefine the scope of the PG industry, which has progressed more slowly compared to the card industry, and to improve the quality of payment gateway services as well as strengthen order management and response systems."
Previously, on the 21st of last month, these eight companies had demanded that authorities "actively intervene and improve the system," claiming that card companies were shifting the cost burden onto PG companies and merchants to compensate for revenue losses caused by fee reductions for small and medium-sized merchants. This time, they requested an expansion and redefinition of the PG industry's scope of work and corresponding regulation.
The eight companies said, "To continuously develop the electronic payment market, it is urgent to redefine the PG industry, which has been limited to 'representative merchants.' As PG companies grow beyond the role of intermediaries between merchants and card companies to partners encompassing payment methods beyond cards, active regulation, policy changes, and improvements in social awareness regarding PG are necessary."
They explained that electronic payment services are diversifying to respond to consumer spending patterns that differ by generation. For example, teenagers prefer prepaid card charging methods over cash allowances. Office workers receive workplace welfare expenses as prepaid points and use overseas simple payments.
PG companies emphasized that, unlike card companies, they can provide differentiated services.
The eight companies stated, "PG companies handle all areas of electronic payment, including cash, tokens, prepaid points, overseas payments, simple payments, mobile micropayments, and gift certificates, in addition to cards. By integrating customer data analysis and artificial intelligence (AI) payment technology, they will provide even more 'hyper-personalized' services."
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