DGFT and au Financial Services Jointly Developed Next-Gen Payment Platform "NESTA"

Digital Garage (DG) and its subsidiary handling payment services, DG Financial Technology (DGFT), have been jointly developing the next-generation payment platform "NESTA" with au Financial Services. The implementation of "NESTA" into the payment processing system for au/UQ mobile communication fees will begin within 2025.

This joint development is being promoted as part of the business alliance between DGFT and au Financial Services concluded in May 2024.

"NESTA" is jointly developed by DG Financial Technology and au Financial Services, using DGFT's multi-payment service "Veritrans4G" as its foundation system. It is Japan's highest standard secure system that fully complies with card information non-retention and non-passage requirements, reducing the risk of information leakage. It also has flexible scalability, minimizing the burden on corporate clients when services or security requirements are added.

Initially, KDDI Corporation will implement "NESTA" in the payment processing system for au/UQ mobile communication fees, which is expected to enhance security and improve collection operations productivity by reducing the risk of information leakage and the work required for service expansion. In the future, implementation is also being considered for various services within the KDDI Group and for corporate clients outside the group.

Background of the Joint Development of the Next-Generation Payment Platform "NESTA"

The KDDI Group is implementing its "Satellite Growth Strategy," focusing on 5G communications, data-driven operations, and generative AI, working in growth business areas such as DX and finance, as well as challenging new growth areas such as mobility and healthcare to drive further business expansion.

au Financial Services, which has a business alliance with DGFT, is expanding its business based on unique credit provision models that combine various data owned by the KDDI Group. It issues "au PAY Card" (with 10.2 million members) and handles payment agency services that collectively manage credit card payments for KDDI Group's communication fees, thus expanding its business domain as a key supporter of the group's cashless promotion.

Against this background, DGFT, an infrastructure company serving the cashless market with over 1.19 million payment locations and payment handling of 7.5 trillion yen, aims to utilize its payment platform through this joint development of "NESTA" with au Financial Services to provide secure and safe payments to merchant companies both within and outside the KDDI Group.

Features of "NESTA"

Rich Payment Methods

• Supports over 40 types of payment methods including major payment methods such as credit card payments, code payments, carrier payments, convenience store payments, bank payments, as well as Apple Pay and Google Pay.

High-Performance Stable Data Processing

• Uses high-speed databases also adopted by major financial institutions.
• Operates two high-performance data centers in geographically separate locations with real-time two-way data synchronization to support disaster recovery and BCP. Ensures stable operation without downtime even if one system fails.

Japan's Highest Level of Security System

• Operates with a system configuration and business operations that fully comply with PCI-DSS, the data security standard adopted by the five international credit card brands.
• Establishes a security system with 24/7 monitoring to realize safe and reliable payment processing.

Positioning in Group Strategy

The Digital Garage Group aims to dramatically expand DGFT's payment handling volume through collaborative partnerships, including this joint development with au Financial Services, and to increase its market share and improve its industry positioning in the growing cashless market.

Furthermore, under the group strategy "DG FinTech Shift," we will accelerate growth through collaborative efforts with various strategic partners, aiming to achieve our medium-term management plan ahead of schedule and contribute to the realization of a secure, safe, and convenient cashless society.

About VeriTrans4G

"VeriTrans4G," provided by DG Financial Technology, is a multi-payment service that supports the industry's highest level of payment methods, including basic payments such as credit cards, convenience stores, and banks, as well as electronic money, QR code payments, and international payments.

The credit card payment service provides basic functions such as continuous billing and card information update functions, as well as various security options to prevent fraudulent use as standard, based on Japan's highest level secure system that fully complies with card information non-retention requirements.