Transaction Media Networks Inc.

Business Details

Provides a cloud-based gateway service connecting retail merchants with multiple payment brand operators. Offers 46 payment services on a one-stop basis, including electronic money, credit, QR/barcode, house prepaid, and common point services, deployed at over 1,000 merchants. As of the end of March 2026, the number of connected terminals reached 1.21 million. Consolidated subsidiary WebSpace Corporation complements the business with POS System / MMK Service. In September 2025, the company made For-J Co., Ltd. a subsidiary to promote in-house development.

Recent Overview

Operating income/loss turned profitable; net assets declined significantly due to treasury stock acquisition

In FY2026 (ending March 2026), net sales were ¥13,276 million (up 7.9% year on year), and operating income was ¥642 thousand, turning profitable from an operating loss of ¥504 million in the prior fiscal year. Stock revenue (center usage fees and QR/barcode settlement fees) drove the results, while terminal sales declined due to a rebound effect from a large-scale project in the prior fiscal year. The relocation of the data center was completed in September 2025 (with relocation-related expenses of ¥345 million recorded). In the same month, the company made For-J Co., Ltd. a subsidiary to promote in-house development. In addition, following the acquisition of ¥3,499 million in treasury stock, net assets decreased significantly from ¥10,126 million to ¥6,565 million, and the equity ratio declined to 22.8%. In March 2026, the company launched the B2B payment service "Shiharai Kakumei." For FY2027 (ending March 2027), the company forecasts net sales of ¥16,535 million and operating income of ¥831 million, supported by the drop-off of relocation-related expenses, among other factors.

Key Products

Growth Drivers

• Continued expansion of stock revenue (center usage fees and QR/barcode settlement fees): Year-on-year growth continues, driving group sales
• Steady increase in the number of connected terminals: 1.21 million as of the end of March 2026 (up approximately 98,000 from the prior fiscal year-end), with further increases expected
• Government policy promoting cashless payments: The cashless payment ratio reached 58.0% in 2025, with the 2030 target raised to 65%, supporting continued market expansion
• Drop-off of expenses following completion of data center relocation: Relocation-related expenses of ¥345 million incurred in FY2026 (ending March 2026) will drop off from FY2027 (ending March 2027) onward, contributing to improvement at each profit level
• Resolution of the timing gap in terminal sales and start of new terminal orders: Terminal sales originally scheduled for recognition in Q4 of FY2026 (ending March 2026) will be recognized in the following fiscal year, with sales growth expected from the start of new terminal orders
• Launch of the B2B payment service "Shiharai Kakumei": Started in March 2026, aiming to grow as a new pillar of payment services
• Expansion of information processing services: Promoting expansion of existing business and development of new businesses leveraging the business infrastructure of the electronic payment service
• Promotion of in-house development through the subsidiarization of For-J Co., Ltd.: Reducing external expenditure and improving cost structure

Risks

• Volatility risk in flow revenue (terminal sales and development revenue): Dependent on the timing of large-scale order receipts, with delays and lost orders occurring due to changes in customer plans (terminal sales declined year on year again in FY2026, ending March 2026)
• Sharp increase in interest-bearing debt from financing activities: In FY2026 (ending March 2026), long-term borrowings increased by ¥7,080 million, and fixed liabilities surged from ¥1,835 million to ¥6,217 million. Interest expense also increased to ¥91 million (from ¥27 million in the prior fiscal year)
• Decline in equity ratio: The equity ratio fell from 37.3% to 22.8% due to the ¥3,499 million acquisition of treasury stock, weakening the financial base
• Delayed launch of the information processing business: New services require significant resources for design and development, posing a risk of failing to achieve planned revenue (a delayed launch occurred again in FY2026, ending March 2026)
• Intensifying competition: Industry competition is intensifying due to existing payment networks such as CAFIS, CARDNET, and stera, as well as the rise of QR/barcode payment operators
• System failure and security risks: As the service is required to maintain high availability as social infrastructure, stable operation must be maintained following the completion of the data center relocation
• Rising personnel and outsourcing costs: Personnel costs, including outsourcing costs, are increasing due to IT talent shortages and price inflation, pressuring profitability; efforts to promote in-house development are underway in response
• Occurrence of equity method investment loss: An equity method investment loss of ¥15 million newly arose in FY2026 (ending March 2026)