(L-R) GMO-FG CEO Kentaro Sugiyama and Soft Space CEO Joel Tay Jin Ghee
Malaysian fintech-as-a-service (FaaS) company Soft Space has announced an undisclosed investment from its long-standing partner and Japanese payment processing company GMO Financial Gate (GMO-FG).
This alliance, coming before Soft Space’s planned Series C funding round, aims to provide cashless payments across various industries in Japan, including transportation, hospitality, and the extensive food and beverage (F&B) sector.
Also Read: Malaysian fintech-as-a-service firm Soft Space closes US$31.5M Series B1 round
Japan has a US$650 billion cashless payment market.
Founded in 2012, Kuala Lumpur-headquartered Soft Space offers merchants and consumers solutions, such as contactless payment through mobile devices and white-label e-wallet services. It serves over 90 financial institutions and partners across 30 global markets.
Leveraging GMO-FG’s extensive client network, Soft Space looks to explore new opportunities in sectors traditionally reliant on cash transactions. With Japan being a prime destination for international tourists, this move towards cashless payments is anticipated to boost tourist spending.
Kentaro Sugiyama, CEO of GMO-FG, said, “Since our collaboration began in 2018, Soft Space and GMO-FG have cultivated a strong relationship by integrating Soft Space’s SoftPOS services with GMO-FG’s payment network, with an initial focus on the transit segment. This capital alliance is a step towards deepening our collaboration and expanding Japan’s face-to-face cashless payment market.”
Also Read: Japan’s JCB injects US$5M into Malaysian fintech firm Soft Space
In April last year, the Malaysian firm tannounced the completion of its Series B extension round at US$31.5 million, led by Southern Capital Group. Returning investor transcosmos, strategic investor JCB, and Hibiscus Fund (jointly managed by RHL Ventures and South Korea’s KB Investment) also participated.
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