Digital Garage Begins Providing Invoice Card Payment Function to Regional Bank DX Platform
Digital Garage has begun providing the Business Invoice Payment Service (BIPS) based on the B2B payment service "DGFT Invoice Card Payment" to "DX Connect Gate," a platform for streamlining accounting operations such as invoice receipt and payment, jointly developed by TIS and Hiroshima Bank for regional banks.
As the first phase of this project, invoice card payment functionality has been implemented in "Hirogin Smart Fine," a DX digital solution for Hiroshima local companies.
Background of the Collaboration
Small and medium-sized enterprises often retain manual processes in daily accounting operations such as invoice management and payment management. Even when accounting operations are systematized, analog work often remains due to business partners using different services, preventing smooth data integration.
To resolve such accounting operation challenges and support optimization of cash management for small and medium-sized enterprises, Digital Garage's B2B payment service "DGFT Invoice Card Payment" has been integrated as the foundation for invoice card payment functionality (BIPS) in the "DX Connect Gate" DX platform being deployed to regional banks. This provides a simple and speedy cash flow solution utilizing card schemes, different from traditional bank financing, to further support the growth of small and medium-sized enterprises.
As the first phase of the "DX Connect Gate" project, invoice card payment functionality has been implemented in "Hirogin Smart Fine," which Hiroshima Bank has begun providing in collaboration with multiple companies.
Main Features of Regional Bank DX Platform "DX Connect Gate"
- Operational efficiency through centralized management of received invoices
- Diversification of payment methods and provision of invoice card payment functionality
- Improved management decision-making speed through visualization of management and financial data
- Phased system implementation utilizing existing environments
"Hirogin Smart Fine" Service Content
(1) Invoice DX Service
- After receiving invoices, AI-OCR automatically digitalizes their content
- Automatic data linkage function automatically connects invoice data to payment DX service
(2) Payment DX Service (including BIPS based on "DGFT Invoice Card Payment")
- Seamless payment processing using invoice data automatically linked from invoice DX service
- Centralized management of billing data, enabling operational efficiency and prevention of missed payments
- Payment methods include bank transfer and invoice card payment (BIPS), selectable according to corporate needs
- This eliminates the need for accounting staff to manually manage and process payments, completing transfer procedures through simple list screen operations
Benefits Provided by Invoice Card Payment Service (BIPS)
- Bank Transfer to Invoice Issuer: Transfers are made to the invoice issuer's bank account under the buyer's name within 3 business days (transfer agency service).
- Flexible Cash Flow Management: Unlike regular bank transfers, utilizing card payment allows funds to be prepared by the card payment account withdrawal date, enabling payment to invoice issuers on specified dates while effectively extending actual account payments, stabilizing cash flow.
- Accounting Operation Efficiency: Integrating card payment information into "Hirogin Smart Fine" enables centralized management of invoice data and payment information, simplifying accounting processes.
- Utilization of Points and Cashback: Using credit cards (shopping credit) allows utilization of corporate point rewards and cashback programs.
About "DGFT Invoice Card Payment Function" - Foundation Service for BIPS
"DGFT Invoice Card Payment" is a key initiative in our group strategy "DG FinTech Shift," aiming to further expand B2B market payment services. By switching invoice payments from bank transfers to credit card payments, it realizes operational efficiency through convenient card usage and resolution of cash flow challenges through effective payment deadline extension. It can be used even when business partners do not support card payments, supporting cash flow for small and medium-sized enterprises including seasonal periodic funding shortages and sudden funding needs.
Future Initiatives
TIS and Hiroshima Bank plan to sequentially expand the service area of "DX Connect Gate" with regional banks to transform the business environment and promote DX for small and medium-sized enterprises (SMEs). Under this initiative, Digital Garage will conduct joint marketing with TIS and Hiroshima Bank to promote invoice card payment functionality (BIPS) as a means to optimize cash management for small and medium-sized enterprises.
Digital Garage will also advance integration with upstream accounting and business systems (ERP, etc.) to provide SMEs with an environment for seamless and simple use of invoice card payment.
Norbert Gehrke
