October 13, 2023
Now Available in Japan! NETSTARS Launches Payment Platform for Hotels, with Fujita Kanko as the First Adopter
Enabling Digital Transformation of the Billing Process with Overseas Travel Agents
NETSTARS Co., Ltd. (Headquarters: Chuo-ku, Tokyo; Representative Director and President: Tsuyoshi Ri; hereinafter, “NETSTARS”), in collaboration with Worldpay Inc., the Japanese subsidiary of Worldpay from FIS, a global provider of payment solutions (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Hideya Komori; hereinafter, “Worldpay”), will provide a payment solution for hotels, developed on the basis of NETSTARS’ multi-cashless payment solution “StarPay”, to Fujita Kanko, Inc., a major player in the hotel industry that operates 64 facilities both within and outside Japan (Headquarters: Bunkyo-ku, Tokyo; President and Chief Executive Officer: Yoshihiro Ise; hereinafter, “Fujita Kanko”). A trial operation of the service was launched in September, with full-scale implementation starting on November 1. Operation of the service at all Fujita Kanko hotels is a future aim. The service will be the first* development and provision in Japan of a platform that specializes in billing and payment processes via the use of virtual card numbers (VCNs) to connect domestic hotels with overseas travel agents.
*According to in-house investigations
With the introduction of this payment platform service for hotels, accommodation facilities will be able to handle and process Mastercard virtual card numbers (VCNs), as provided by Mastercard, in settlement during transactions with overseas online travel agents (OTA) and overseas travel agents. In particular, this will allow centralized management of the workload of billing and reconciliation with overseas travel agents, who did not previously have a means of payment within Japan, via website. In addition, payment management using VCNs during first-time transactions with new overseas travel agents will drastically reduce the workload of tasks such as deposit management.
Background of Service Implementation
There is an increasing trend for hotels to engage in transactions with overseas travel agents as part of response to inbound travel demand. However, there is also a trend in countries other than Japan for overseas travel agents to use VCNs for payment, rather than bank-based overseas remittance which is commonly used in Japan. Demand from overseas travel agents for Japanese hotels to handle VCN payment has become a hot topic in the industry.
Furthermore, acceptance of VCN payment, which is a type of credit card payment, at hotels in Japan involves security issues such as the management of credit card information, as well as operational issues such as the workload of staff responsible for settlement and accounting tasks. This has led to a situation where it is difficult for hotels to accept VCN payment without intermediation.
Support from Fujita Kanko in Realizing the Payment Platform
NETSTARS and Worldpay have utilized both companies’ strengths, namely development capabilities and global standard payment methods, to connect Worldpay’s payment service with NETSTARS’ multi-cashless payment solution “StarPay”. The payment platform service for hotels was developed with the additional incorporation of Fujita Kanko’s feedback from a user perspective. Hotels that use the service will be able to handle VCNs in settlement with overseas travel agents, including OTAs, enabling further focus of their energy on response to inbound travel demand. NETSTARS aims to provide this service to as many hotels as possible, by lowering the hurdle for implementation through a cloud-based provision of the service.
*About Mastercard’s Virtual Card Number (VCN)
A VCN is a virtually-issued secondary card number with a corporate Mastercard credit card (purchasing card) as the primary card number. Within the credit limit of the primary number, VCNs can be issued for a single transaction, a set number of transactions, or a set period. Furthermore, restrictions or conditions of use, such as the maximum usable amount or usage period, can be set for a single VCN. VCN usage is billed as a lump sum to the account of the primary number’s cardholder.
Anticipated Results
Hotels will be able to accept payments made via VCN, as requested by overseas travel agents, without needing to perform tasks such as inputting credit card numbers into payment terminals. The workload of reconciliation processes for payments from overseas travel agents will be reduced, and increased operational efficiency and labor-saving will be achieved.
In future, through proactive coordination between this platform and existing services and booking systems in the tourism industry, we will contribute to tourism DX (digital transformation), which is cited as a goal by the Japan Tourism Agency.
■About Fujita Kanko, Inc.
Established in 1955, Fujita Kanko develops tourism-oriented businesses both in Japan and overseas with the aim of “realizing prosperity and fulfillment in society”. The company operates various hotels including Hotel Chinzanso Tokyo, Hakone Kowakien Ten-yu, Washington Hotel, and Hotel Gracery, in addition to leisure facilities such as Hakone Kowakien Yunessun Spa and Shimoda Aquarium, as well as wedding ceremony facilities, closely accommodating a diverse range of client needs.
Corporate Site: https://www.fujita-kanko.co.jp/
■About Worldpay from FIS
Worldpay from FIS is a payment technology company with unique capabilities to activate global omni-commerce. With industry-leading scale and an integrated technology platform, Worldpay offers customers a comprehensive suite of products and services globally through a single connection. Worldpay handles over 40 billion transactions annually via more than 300 payment methods, in 146 countries, and in 126 currencies. Worldpay’s growth strategy is to expand global e-commerce, integrated payments, and B2B offerings into high-growth markets, industries, and customer segments.
■About NETSTARS
NETSTARS Co., Ltd. has been developing our gateway business since our establishment in 2009. We were the first agent to introduce the QR code payment service “WeChatPay” to Japan in 2015. Since then, we have developed StarPay, a multi-cashless payment solution that enables stores to introduce and manage various cashless payments simultaneously, focusing on domestic and international QR code payment services. Currently, building on the foundation of StarPay’s technological capabilities, we are working on the development of multifaceted services.
Corporate Site: https://www.netstars.co.jp/