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This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

February 14, 2025

JCI Launches the “Digital Ninsho Module”
— “Embed It into Your Smartphone App to Build the Next-Generation Standard DX Platform!” —

Japan Communications Inc. (hereinafter referred to as "JCI") is pleased to announce the launch of the next-generation standard DX (Digital Transformation) platform, the "Digital Ninsho* Module". This initiative has been made possible through partnerships with its subsidiary my FinTech Inc., which operates as a certified digital certification authority under the Digital Signature Act, Mebuku Ground Inc., an industry-government-academia collaboration that provides the "Mebuku ID" and "Mebuku Data Linkage Platform" (headquartered in Maebashi City, Gunma Prefecture; President: Masaki Kigure), and other strategic partners.
* Ninsho means 認証 in Japanese, which contains both identity verification and authentication.

The Digital Ninsho Module is provided as a software module for smartphone application development. Companies that currently offer smartphone applications, as well as those planning to launch new applications, can embed this module into their own apps for use.

The Digital Ninsho Module enables secure internet usage while allowing cross-entity data linkage under the explicit consent of users (self-sovereignty). This facilitates the provision of personalized services tailored to each individual citizen. This innovation marks a major step toward realizing the long-envisioned digital society where security and convenience coexist.

Current Challenges
As smartphones are now the primary way people access the internet, many companies and local governments provide services through mobile apps. However, this shift has introduced two major challenges:

1. Security Concerns
In apps that handle users' personal information and assets, account takeovers due to fraud and hacking occur on a daily basis. While security measures such as two-channel authentication have been introduced to enhance safety, they often remain insufficient. Moreover, these security layers compromise user convenience, making apps less user-friendly.

Thus, the key challenge is: how can we improve security without sacrificing usability?

2. Difficulty in Data Linkage
When multiple service providers attempt to share data using a common ID, it is necessary to send authentication information. This means relying on a third party for authentication. Furthermore, using the same ID and password across multiple services poses a risk: if authentication information is leaked, all linked services may be affected. This has become a major obstacle to data linkage in crucial sectors closely connected to citizens' daily lives, such as government, finance, healthcare, and transportation.

One of the primary goals of DX is to deliver personalized services to each citizen, enhancing their quality of life. However, current barriers—lack of secure smartphone app usage and the inability to facilitate data linkage—are hindering true DX progress, despite widespread discussions on its importance.

Benefits of the "Digital Ninsho Module"
A proposal for all companies and local governments that provide smartphone apps.

Embed the Digital Ninsho Module into your app. By doing so, you will not only address the two major challenges outlined earlier but also gain the following seven key benefits:

1. Reliable identity verification through My Number Card signature validation using the Public Personal Authentication Service (JPKI) will be embedded into your app. my FinTech Inc., a certified certification provider under the Digital Signature Act, is authorized under Article 17, Paragraph 1, Item 4 of the Public Personal Authentication Act to provide signature verification services.

2. A highly secure authentication system that prevents impersonation and hacking will be embedded. This is a reliable authentication method that does not rely on traditional ID-password combinations or two-channel authentication.

3. A secure, reliable, and easy login from a PC will be embedded.

4. The module enables reliable data linkage across multiple service providers through a unique common identifier assigned to each user. Importantly, users do not need to remember this common identifier.

5. Despite being a system that enables data linkage, it does not rely on third-party authentication, ensuring 'Independent Responsibility'. Unlike methods using common IDs, each service provider performs its own authentication independently and completes the verification process within its own system.

6. This system is based on the principle that individuals should have the right to control and utilize their own data, and that this should be technically implemented—ensuring users achieve data self-sovereignty. To support this, a Dynamic Opt-In function is embedded, allowing users to grant or revoke data usage permissions anytime, anywhere. The system operates exclusively based on explicit consent, ensuring that user decisions cannot be altered or tampered with. Furthermore, all consent records are securely stored as verifiable evidence, ensuring transparent and accountable data management.

7. A legally valid digital signature function using a certified digital certificate under the Digital Signature Act will be embedded. It supports KYC compliance with legal backing under regulations such as the Act on Prevention of Transfer of Criminal Proceeds, the Act on the Promotion of Administrative Procedures Utilizing Information and Communication Technology, and the Mobile Phone Fraud Prevention Act. By utilizing certified digital certificates, businesses can ensure legal credibility and regulatory compliance in digital identity verification processes.

Leading Cases
The greatest strength of digital technology lies in personalized optimization. For example, in the childcare benefits (municipal benefits) program offered by Maebashi City, the system utilized My Number Cards, resident information held by the municipality, Mebuku ID, and the Mebuku Data Linkage Platform to introduce a mechanism that automatically identifies eligible recipients during benefit applications through Mebuku Pay. As a result, the typical time-consuming procedure that would take 1-2 months was completed in just 1-2 weeks after receiving the application, achieving rapid service delivery.

This data linkage system is also applicable to other sectors. For example, by linking data from hospitals, pharmacies, transportation services, and local governments, services can be personalized for elderly patients—such as arranging hospital transportation or prescription orders at pharmacies. This allows the provision of a one-stop service that can be arranged with a single click user consent.

Pricing for the "Digital Ninsho Module"
We offer this service at a price less than one-quarter of the cost of the public personal authentication service (JPKI) and security measures currently used by companies and local governments that provide services through smartphone apps. Our pricing policy is based on our fundamental philosophy that the Internet, as a social infrastructure, should be both secure and affordable, aligning with the same principles as our flagship mobile communications service, Nihon Tsushin SIM.

As a company, we are committed to "Secure and Reliable Transportation of Bits". Through our services and products, we aim to contribute to society and enhance sustainable corporate value.

About Japan Communications Inc. (JCI)
Japan Communications Inc., founded in 1996, is a pioneer that has brought innovation to the telecommunications industry and played a leading role in shaping the MVNO market. Centered on simple and rational mobile communication services, JCI has established a stable revenue model while striving for continued growth. With its strengths in patented technologies such as the wireless leased line "Closed SIM-to-SIM Communication" and the digital authentication technology "FPoS," JCI focuses on providing both mobile communication services and an advanced digital authentication infrastructure built around authentication technology. Its PCI DSS-certified private mobile line is trusted by high-security sectors, including law enforcement and banking, while FPoS offers an industry-leading combination of world-class security and user convenience. Guided by its mission to "Secure and Reliable Transportation of Bits," JCI is committed to building a secure, borderless mobile infrastructure and driving sustainable growth and corporate value enhancement.

*All company names and product names used in this release are trademarks or registered trademarks.