Direct Payment Shared Service Center for Financial Institutions Now Supports National Tax Agency Payments- Grows to 40 Participating Financial Institutions -
Sep. 01, 2009
NTT DATA Corporation
The Direct Payment Shared Service Center for Financial Institutions provided by NTT DATA Corporation now supports direct payment of taxes to the National Tax Agency, as of September 2009.
The start of service for the National Tax Agency brings to three the number of government agencies now using the direct payment service, the other two being Japan Customs (under the Ministry of Finance) and Patent Office. With this expansion, the number of financial institutions using the Shared Service Center has also jumped dramatically, from seven last year to 40 in September 2009. This number is expected to rise further when the Financial Bureau of the Ministry of Finance introduces the direct payment service in the near future.
The Shared Service Center will continue to expand the number of participating financial institutions and push for wider use of the direct payment system, which offers users faster and more convenient electronic payment while contributing to more efficient tax collection and boosting e-government initiatives at the national and local level.
About the Direct Payment System
Currently the direct payment system, which first became available in October 2008, is already in use by Japan Customs (under the Ministry of Finance) for its Sea-NACCS system for automated clearance of maritime cargo (the Air-NACCS system for automated clearance of air freight will adopt the service in February 2010) and the Patent Office, in addition now to the National Tax Agency.
Direct payment offers a more convenient way of paying taxes and fees using the Pay-easy (see Note 1) electronic payment service. Taxpayers can make payments when filing declarations by pre-registering a bank account from which taxes and fees are automatically transferred. Conventional systems require separate operations for filing declarations with the government agency and for making electronic payments, but with the direct payment system, online declaration and payment are completed in a single access to the agency Web site.
Now that the direct payment method is available for paying national taxes, people using the e-Tax service to file electronic tax declarations will also be able to complete the payment procedure with a simple click of the mouse. Taxpayers will not need to have an Internet banking account, and will even be able to have a tax accountant handle the payment procedure on their behalf, for greater convenience at tax filing time. Besides immediate payment, a payment date may be specified so that the account transfer takes place at that time.
Service Overview
The Direct Payment Shared Service Center saves financial institutions the cost and time of system development for direct payment support, by providing the connections to government agency Web sites and by handling the communication transactions with the multi-payment network, as well as using the existing CAFIS® (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 costs thanks to the automated, paperless collection operations.
Participating Financial Institutions
Participation by financial institutions in the Direct Payment Shared Service Center is as follows.
The government agencies that have concluded agreements for the provision of services vary according to the financial institution.
(Listed in order by date of participation and by bank code)
| oined October 2008 | Mizuho Bank, Sumitomo Mitsui Banking Corporation, Bank of Kyoto, The Aichi Bank, The Bank of Nagoya |
|---|---|
| Joined January 2009 | Bank of Tokyo-Mitsubishi UFJ, The Ashikaga Bank |
| Joined September 2009 | The Hokkaido Bank, The Shonai Bank, The Bank of Iwate, 77 Bank, The Toho Bank, The Gunma Bank, The Chiba Bank, The Chiba Kogyo Bank, The Hokuriku Bank, The Shimizu Bank, The Hyakugo Bank, The Hiroshima Bank, Fukuoka Bank, The Nishi-Nippon City Bank, The Chukyo Bank, The Saikyo Bank, Kumamoto Family Bank, Community Bank Senpoku, The Ibaraki-ken Credit Cooperative, Gunma-ken Credit Cooperative, Seiwa Shinyo Kumiai, Dai-ichi Kangyo Credit Cooperative, Hanbara Credit Cooperative, Niigata Credit Union, Kyoei Shinyokumiai, Yamanashikenmin Shinyoukumiai, Tsuru Shinyoukumiai, Aichi-ken Chuo Shinyo Kumiai, The Hidashin Bank, Shigaken Shinyoukumiai, Nozomi Shinyoukumiai, Danyo Shinyo Kumiai Bank, Kagawaken Credit Cooperative |
In addition to the above, 13 more financial institutions plan to join by the end of March 2010, with further growth expected after that.
Looking Ahead
Already before introduction of the Direct Payment Shared Service Center by the National Tax Agency, the service has been in use by Japan Customs and the Patent Office. The following agency is planning to introduce the service in the near future.
- Financial Bureau of the Ministry of Finance (for payment of rental fees and payment for purchases to the national government) : March 2010
NTT DATA will be working to expand the Shared Service Center to all financial institutions of all banking categories by the end of fiscal 2012.
Notes:
*1 Pay-easy:
A service making use of the Multi-Payment Network for paying taxes, public utilities, and various fees, "any time, anywhere, safely, and simply," by Internet banking, mobile banking, or at ATMs.
A service operated by NTT DATA for relaying online transactions of credit data (credit inquiries, sales amounts, etc.) and funds transfer data among credit card companies, financial institutions, corporations, and participating merchants. Begun more than 25 years ago in February 1984, the service is a central part of Japan's payment infrastructure, handling more than 250 million transactions a month.
* 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. Norihiko Sugimoto, Mr. Tomohisa Sugiyama
Public Relations Department
NTT DATA Corporation
Tel: +81-3-5546-8051 - Mr. Norihiko Sugimoto, Mr. Tomohisa Sugiyama
- For inquiries about services:
- Mr. Hirotaka Usuki, Mr. Tatsuya Hoshina
MPN Planning
Cards and Payments Services Division
First Financial Sector
NTT DATA Corporation
Tel: +81-3-3280-7260
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