Direct Payment Shared Service Center Launched

- An easy way for financial institutions to support the new Pay-easy direct payment system -

Oct. 14, 2008

NTT DATA Corporation

NTT DATA Corporation (Head Office: Koto-ku, Tokyo; President and CEO: Toru Yamashita) on October 12 began provision of a Direct Payment Shared Service Center, for shared use by financial institutions. The center offers a simple way for banks and other financial institutions to support the new “direct payment” system for paying taxes and fees using the Pay-easy electronic payment service.

A number of mega-banks and regional banks are already connected to this center, with many more financial institutions expected to follow. For corporate and individual users alike, provision of the Direct Payment Shared Service Center will help expand the use of direct payment, a faster and more convenient way of making electronic payments, and should also contribute to the promotion of electronic government at the national and local levels.

Background to Service Provision

Using the new direct payment system, taxpayers, for example, can go to the appropriate tax agency Web site and electronically file their tax declaration, and at the same time have their tax payment automatically transferred from their pre-registered bank account. Other fees to government agencies are handled similarly, in this one-stop service for filing declarations and making payment. Such convenience sets it apart from conventional services that require electronic declaration filing and electronic payment to be carried out in two separate operations. With the direct payment system, online declaration and payment are completed in a single Web site access.

The direct payment system was first adopted in October 2008 by Japan Customs (under the Ministry of Finance) in its Sea-NACCS system for automated clearance of maritime cargo. The Patent Office will be using it for payment of patent application fees starting in January 2009, the National Tax Agency for tax payments in September 2009, and Japan Customs in its Air-NACCS system (for automated clearance of air freight) in February 2010. As these and other agencies sign on, an increasing number of financial institutions are expected to participate in the system.

Financial institutions wishing to support the direct payment system on their own need to establish dedicated network links to each of the government agency Web sites. Moreover, they need to set up a mechanism with each financial institution for (1) receiving account transfer information, (2) immediately transferring funds between accounts, and (3) notifying the government agency of the result of the account transfer via Pay-easy (see Note 1). The financial institution must also bear the cost of the necessary system development.

NTT DATA decided to offer the Direct Payment Shared Service Center as an alternative to the above scenario in order to promote wider use of the direct payment system. The Center provides the services outlined below to multiple financial institutions.

Overview of the Center Service

The Direct Payment Shared Service Center offered by NTT DATA greatly reduces the cost and time of system development by financial institutions for direct payment support, by providing the connections to government agency Web sites and by handling the communication transactions with the Pay-easy service, as well as using the existing CAFIS® (see Note 2) system for handling account transfers.

Financial institutions supporting direct payment can expect increased opportunities to earn collection fees, at the same time as they reduce their administrative costs thanks to the automated, paperless collection operations.

Overview of Direct Payment Shared Service Center

Figure

Participating Financial Institutions

Participation by financial institutions in the Direct Payment Shared Service Center is as follows.

(Listed in order by date of participation and by bank code)
Joined October 2008

Mizuho Bank, Sumitomo Mitsui Banking Corporation, Bank of Kyoto, The Aichi Bank, The Bank of Nagoya

Planning to join in January 2009

Bank of Tokyo-Mitsubishi UFJ

Several other financial institutions are considering introducing the service in view of the September 2009 start of direct payment support by the National Tax Agency.

In offering this service, NTT DATA hopes to contribute toward wider use of the “direct payment” system enabling quick and convenient electronic payment by both individual and corporate users, and to help promote electronic government at the national and local levels.

Notes:

*1 Pay-easy:

A service operated by the Japan Multi-Payment Network Management Organization (J.A.M.M.O.) enabling payment of public utilities, mobile phone bills, vehicle tax, national pension plan monthly premiums, or Internet shopping purchases, “any time, anywhere, and simply,” by Internet banking, mobile banking, or at ATMs. 

*2 CAFIS®:

An intermediary service operated by NTT DATA for online transactions of credit data (credit inquiries, sales amounts, etc.) and funds transfer data (for bank POS services and cash dispenser services in companies) among credit card companies, financial institutions, corporations and participating retailers.

  • *CAFIS is a registered trademark of NTT DATA Corporation.
  • *Other names of products, services, and companies herein are the trademarks or registered trademarks of their respective owners.

For more information, please contact:

For media inquiries:

Mr. Tomohisa Sugiyama
Public Relations Department
NTT DATA Corporation
Tel: +81-3-5546-8051

For inquiries about the service:

Mr. Hirotaka Usuki, Mr. Tatsuya Hoshina
MPN Planning
Cards and Payment Transaction Business Unit
Payment Solutions Sector
NTT DATA Corporation
Tel: +81-3-3280-7260

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