Billing System Corporation

Business Details

Billing System operates the "Payment Support Business (Single Segment)" as its sole reportable segment. The company provides an ASP-type payment platform connecting corporations with financial institutions and payment institutions, offering a diverse range of services including Quick Deposit Service, Payment Collection Agency Service, smartphone payments (PayB), cashless payment terminals, and corporate remittance support (PayB for Business). Because the company holds deposits received in connection with the Payment Collection Agency Service, its nominal equity ratio is 10.2%, but its substantive equity ratio—after netting deposits received against cash—is 79.1%, indicating a high level of financial soundness.

Recent Overview

In Q1 2026, the company achieved a substantial increase in both revenue and profit, with net sales up 27.9% and operating profit up 98.1%

In the first quarter of FY2026 (ending December 2026) (January–March), net sales reached ¥1,371 million (up 27.9% year on year) and operating profit reached ¥275 million (up 98.1% year on year), representing a substantial increase in both revenue and profit. Growth in spot sales, driven by the recognition of projects carried over from the prior period, contributed to a temporary rise in profit margin (the company describes this as a one-time factor). PayB announced partnerships with four institutions: Okinawa Kaiho Bank, Kyoto Shinkin Bank, Miyazaki Bank, and the Resona Group. PayB for Business also began to be incorporated into JCB's "Cashmap." There has been no change to the full-year earnings forecast (net sales of ¥5,607 million, operating profit of ¥929 million). The annual dividend forecast is ¥32.50 (an increase from ¥25.80 in the prior fiscal year).

Key Products

Growth Drivers

• Market expansion driven by government-led promotion of cashless payment adoption and growing consumer preference for convenience
• Continued expansion of PayB affiliated merchants (payment slip issuing institutions) (18,745 companies and organizations as of end of March 2026)
• Expansion of PayB for Business into the corporate market through the business alliance with JCB (incorporation into "Cashmap")
• Promotion of DX by government and financial institutions, and growing demand for digital collection in the tax, public levy, and utility bill fields
• Advancement of payment DX driven by growing demand for labor-saving investment amid worsening labor shortages
• Increased transaction volume in the Payment Collection Agency Service and Quick Deposit Service, driven by active stock market and foreign exchange fluctuations
• Expanded rollout to small and medium-sized merchants through the buildout of the agency sales network for the new "PT-10Pro" terminal

Risks

• Risk that the Quick Deposit Service is highly dependent on fluctuations in the stock and foreign exchange markets, leading to deteriorating performance during market downturns
• Risk of a slowdown in Quick Deposit Service transaction volume due to changes in the external environment, such as strengthened identity verification requirements amid a surge in unauthorized use of securities accounts
• Regulatory risk that provided services may be restricted due to legal amendments such as the revised Installment Sales Act, revised Banking Act, and Payment Services Act
• Risk of a reduction in deposits should a bank holding deposits received in connection with the Payment Collection Agency Service fail (addressed through segregated management using settlement-type deposit accounts)
• Risk that development delays for new terminals such as the "PT-10Pro" could push sales recognition into the following period, along with impairment risk associated with new software development
• Growing uncertainty over the economic outlook due to fluctuations in resource and energy prices and changes in consumer sentiment amid the materialization of geopolitical risk
• Uncertainty regarding the sustainability of the high profit margin recorded in Q1 throughout the full year, as it was driven by one-time factors such as projects carried over from the prior period