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Japan's Deferred Payment System AFTEE Now Available on PChome

Net Protections

On Aug. 21, Japanese Fintech company Net Protections announced strategic partnership with Taiwan's e-commerce giant PChome to introduce its deferred payment system AFTEE to Taiwanese customers.

Founded in 2000, Net Protections is the first company to build such system in Japan and has been devoted to promoting this payment method for 20 years.

According to official statistics, AFTEE has become the second most widely-used online payment option in Japan, following credit card payment, with more than 13.5M unique users (more than 10% of the population). In 2018 alone, it has processed over 43M transactions with a total value of $239M in Japan.

AFTEE taps into the first overseas market

With AFTEE, customers can do online shopping in a few clicks: they choose this payment method on e-commerce platform, enter phone number, and verify the purchase with an SMS code. Payment can be made 14 to 30 days after receiving the products.

Since no personal data except phone number are required, customers don't have to be concerned about them being leaked or misused.

The company picked Taiwan as its first overseas market last year. "It is because that customers in the two countries have similar purchasing habits: they prefer to pay in cash and at convenience stores," GM Yuuki Kakumoto said. This resembles Japan when deferred payment has just started its life there.

This payment method is also localized to meet the need of Taiwanese customers. In October, they can choose to pay for their products in installments without presenting a credit card.

Prior to this partnership with PChome, it had cooperated with several Japanese brands based in Taiwan and successfully increased their revenue.

AFTEE believes it will help PChome reach more potential customers, including non-cardholders. By streamlining payment process, it also aims to attract cardholders who embrace mobile shopping.

Now, all the products on PChome can be bought via AFTEE. PChome's CEO Kevin Tsai said the company will continue providing payment methods for customers of all age groups.

Bryan Chou

Bryan Chou is a Taiwan-based and born journalist who writes about innovation and entrepreneurship for Business Next and Meet. Over the past five years, he has written for a student press, translated numerous magazine pieces, and worked as an intern in two startups. He believes what shapes him into who he is today is not only these experiences but the people he has interacted with and the stories he has learned from them.

He has a BA in Foreign languages and literatures from NTU. After graduation, he spent a year in Prague, traveling extensively around Europe to learn about the history and culture of the region from local people. Currently based in Taipei, he hopes to present the best of Taiwan to the world.