Goodwater, Mitsubishi lead Series B for Japan fintech player

Jafco, Shinsei Corporate Investment Corporation, SMBC Venture Capital, and Toppan Printing also participated. It brings Kyash’s total funding to date to almost JPY2.8 billion.

The plan is to leverage new policy momentum within Japan to transition the economy toward more digital transactions. The government’s goal is to increase cashless payments from 20% of total payments currently to 40% by 2025. By comparison cashless transaction rates in Korea, China and the US are 90%, 60% and 45%, respectively.

“The integration of finance with technology coupled with changes in the regulatory environment in Japan are leading to new conceptualizations of money and financial services for consumers,” Eric Kim, a managing partner at Goodwater, said in a statement. “As Japan's nearly $3 trillion retail market transitions to a cashless society, fresh approaches like those of Kyash will not only facilitate the move away from notes and coins but also allow greater flexibility in receiving salaries and compensation, among other innovations.”

Founded in 2015, Kyash offers a prepaid, debit based mobile wallet app that allows consumers to make payments at Visa merchants and peer-to-peer transfers. The company has been designated as a payments provider for a cashless consumers rebate project being rolled out by Japan’s Ministry of the Economy, Trade & Industry.

Its value transfer platform, which obtained a Visa principal license less than two years after its launch, is planned to be upgraded to improve user experience.

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• Topics
• North Asia
• Financials
• Technology
• Early-stage
• Japan
• Mitsubishi UFJ Capital
• Goodwater Capital
• JAFCO
• Shinsei Corporate Investment
• SMBC Venture Capital
• Financial Services