Billing System Corporation
3623・Growth Market・Information & Communication
Business
Billing System Corporation, established in 2000, is a company specializing in payment support. Positioned between businesses and financial/settlement institutions, it provides ASP services for converting, transmitting, and processing payment information on an outsourced basis. Its main services include the Quick Deposit Service (for securities and foreign exchange transactions), the Payment Collection Agency Service (including e-JIBAI, etc.), smartphone payment services (PayB, WeChat Pay, Alipay+), and the sale of cashless payment terminals. Major customers include financial institutions such as securities companies, foreign exchange futures trading companies, and non-life insurance companies, as well as mail-order businesses, property management companies, and government agencies. The company is listed on the Tokyo Stock Exchange Growth Market.
Business Model
An ASP model in which fixed monthly fees and usage-based charges tied to data processing volume, etc., from client companies are recorded as outsourced business revenue. Once a client adopts the service, continued transactions are common, resulting in high switching costs. The Payment Collection Agency Service uses a system in which collected funds are temporarily held in a segregated management account and remitted approximately three days later. Cost of sales mainly consists of financial institution fees and system operation costs related to the Payment Collection Agency Service, and increases in line with revenue growth.
Company Strengths
The Quick Deposit Service has grown into an industry-standard service used by approximately 80 securities and foreign exchange trading companies. The Payment Collection Agency Service for the non-life insurance industry's common system "e-JIBAI" has also become established as an industry standard. Both form high barriers to entry as outsourcing providers for financial institutions under the jurisdiction of the Financial Services Agency.
The number of payment slip issuing institutions (member merchants) for the smartphone payment service PayB expanded to 18,431 companies and organizations as of the end of December 2025. Expansion into diverse channels such as ATM PayB and Kiosk PayB is progressing, and through a business alliance with JCB, expansion of PayB for Business into the corporate market has also begun. A competitive advantage through network effects is being formed.
Cash and cash equivalents at the end of the fiscal year ending December 2025 stood at ¥27,669,879 thousand (including deposits received for payment collection agency services). Against total net assets of ¥3,276,997 thousand, fixed liabilities were only ¥41,377 thousand, maintaining effectively debt-free management. With total capital expenditures of ¥37,557 thousand, capital efficiency is high, and the company retains capacity to respond to business expansion and M&A opportunities.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal periods, from ¥3,143 million in FY2021 to ¥4,547 million in FY2025. In Q1 of FY2026 (fiscal year ending December 2026), the company achieved substantial growth in both revenue and profit, with revenue of ¥1,371 million (+27.9% year-on-year), operating profit of ¥275 million (+98.1% year-on-year), and quarterly net income attributable to owners of the parent of ¥181 million (+103.6% year-on-year). External factors such as active stock market activity and foreign exchange fluctuations boosted Quick Deposit Service revenue, while spot revenue recognition from projects carried over from the previous period temporarily lifted the profit margin. The full-year earnings forecast (revenue of ¥5,607 million, operating profit of ¥929 million) remains unchanged. Although the high progress rate in Q1 (24.5% for revenue, 29.6% for operating profit) suggests room for an upward revision, the company has explicitly noted the presence of one-time factors.
Growth Strategy
Accelerating EPS growth through PayB network expansion, entry into corporate payments, and terminal deployment
Focus on strengthening partnerships with financial institutions and expanding payment slip issuers. As of the end of March 2026, the network reached 18,745 merchants/organizations, with new partnerships announced in Q1 with Bank of Okinawa Kaiho, Kyoto Shinkin Bank, Miyazaki Bank, and four Resona Group banks. Merchant acquisition is being accelerated through diverse connection formats such as ATM PayB, PayB API, and PayB White Label.
PayB for Business, a corporate remittance service launched in 2025, provides web-based completion of tax and utility bill payments. In March 2026, the service began integration with JCB's fund management portal "Cashmap," establishing a sales channel through a major card company. Combined with BPO-based payment agency services, the company is promoting optimal solutions for corporations with high-volume payment needs.
Centered on the new low-cost terminal PT-10Pro, which features voice guidance functionality, the company is building an agency sales network through payment processing companies and system vendors. Deployments to JR station multi-function lockers and parking facilities are progressing steadily. Completion of a contracted development project carried over from the previous period also supported segment performance, with active expansion into small and medium-sized merchants under consideration.
As a core strategy of the medium-term management plan, the company aims to generate stable cash flow from recurring revenue based on a platform where the number of payment transactions structurally accumulates, and to circulate this cash into growth investment and shareholder returns to achieve sustained EPS growth. The full-year EPS forecast for FY2026 (ending December 2026) is ¥93.01 (+43.4% year on year). The annual dividend forecast is ¥32.50 (up from ¥25.80 in the previous period).
Last updated: July 17, 2026