Digital Garage Agrees to Intelligent Data Business Partnership with Resona Group

Digital Garage and Resona Holdings have signed an amendment agreement to their capital and business alliance contract, aimed at further strengthening the alliance established in November 2022 and updated in December 2023.

Through this strengthened partnership, both companies aim to further integrate their management resources and expand their share in the payment business, which is positioned as a focus business in both companies' medium-term management plans. In particular, they will promote "joint development of BaaS/digital finance business" and "joint development of next-generation applications that seamlessly integrate various services of this business with multi-payment solutions," aiming to expand their market share in the SME market, where cashless payment adoption is lagging and access to financial systems remains challenging.

Main Contents of the Strengthened Business Alliance

In addition to the previous business alliance, both companies will promote the following collaborations to realize early partnership effects.

Strengthening Partnership in Payment Business

Expansion of partnership areas and strengthening the joint sales system, and early realization of 1 trillion yen in payment transaction volume through development of next-generation payment applications.

• Expanding partnership areas in the payment business, with Digital Garage providing all payment services to Resona
• Strengthening the joint sales system targeting Resona Group's 500,000 corporate customers through DG Financial Technology (DGFT) sales personnel working alongside Resona Group branch employees
• Joint development of next-generation payment applications that seamlessly integrate multi-payment solutions targeted at SMEs (where cashless payment expansion is expected) with financial solutions from BaaS/digital finance business and billing operation DX services

Joint Promotion of BaaS/Digital Finance Business

Building a new FinTech business foundation through full-scale entry into the financial business via establishment of a joint venture (Digital Garage subsidiary) with Resona.

• Full-scale entry into SME-oriented financial business offering high immediacy and convenience by integrating Resona's financial business expertise, business assets, and strong corporate customer base centered on SMEs with Digital Garage's technological development capabilities, utilizing payment and commercial flow data with next-generation AI technology
• Considering establishment of a joint venture company (Digital Garage subsidiary) aimed at joint development of BaaS/digital finance business

Digital Garage has been promoting initiatives with various strategic partners under the group strategy "DG FinTech Shift," which integrates payments, data, and technology. In this strengthened partnership, in addition to further enhancing the payment business, DG will accelerate its strategy as "DG FinTech Shift 2.0" through full-scale entry into the financial market by leveraging Resona HD's financial business know-how and business assets. Furthermore, through this partnership's "Fintech × Intelligent Data — Data-driven Financial Business," they will contribute to creating Japan's next-generation financial business model.