Japan Communications Inc. (hereinafter referred to as "JCI") is pleased to announce that the cumulative transaction volume of local payment services utilizing FPoS (referring to services such as "Mebuku Pay" operated by Mebuku Ground Inc. in Maebashi, and "Yudepi" operated by Juhachi-Shinwa Bank, Ltd. in Omura; hereinafter referred to as "FPoS Local Payments") exceeded JPY 5 billion in cumulative transactions from the service launch in December 2023 through January 31, 2026.

Although FPoS Local Payments are a relatively late entrant among approximately 300 local payment systems nationwide, FPoS has obtained certification under the Digital Signature Act*1. Backed by "a legally certified authentication infrastructure" and an extremely low-cost operational structure, the service has steadily expanded its user base.
*1 Certification under the Digital Signature Act was first obtained for a digital certificate installed on smartphones by my FinTech Co., Ltd., a consolidated subsidiary of JCI.

■ Authentication Infrastructure Based on Certification Under the Digital Signature Act
FPoS Local Payments are built on public key cryptography (key pair technology) and achieve strict identity verification and authenticity assurance through digital certificates.

JCI has obtained certification for FPoS from the Digital Agency and the Ministry of Justice under the Digital Signature Act. Pursuant to Article 7, Paragraph 1 of the Act, the issuance, facilities, operations, and audit systems related to digital certificates have been confirmed to meet certification standards, and the certification is renewed annually.

By utilizing the My Number Card as a trust anchor, FPoS enables:

• • Secure data collaboration with local governments
• • Rapid and low-cost distribution of benefits from the national or local governments
• • Sophisticated statistical collaboration with transportation operators and others

In particular, by leveraging a digital ID infrastructure with assured authenticity, government benefit payments can be delivered more quickly and at lower cost than with conventional local payment systems. Furthermore, distributing benefits as local digital currency promotes spending at local supermarkets, shopping streets, and restaurants, thereby preventing the outflow of public funds and establishing a mechanism for economic circulation within the local community.

■ Realizing the Circulation of Funds Within the Local Community
FPoS Local Payments establish a mechanism in which funds circulate among:

• • Local residents
• • Local businesses
• • Local financial institutions

In conventional local payment systems, platforms provided by major companies outside the local community are typically adopted, resulting in transaction fees flowing out of the area. One reason for this is that building systems capable of addressing fraud prevention requires significant cost.
In contrast, FPoS Local Payments are based on identity verification anchored to the My Number Card and utilize a highly secure authentication method that makes fraudulent use extremely difficult. This significantly reduces the cost required for fraud prevention and related system development. As a result, local businesses can provide the payment infrastructure themselves, enabling funds associated with local payments to circulate within the community.

■ Retaining Data Within the Community for Policy Utilization
With conventional local payment systems, data typically accumulates within large external companies and cannot be effectively utilized by the community itself.
FPoS Local Payments allow local businesses to provide the infrastructure, enabling data analysis within the community based on user consent (opt-in).

By using the My Number Card as a trust anchor, FPoS enables advanced statistical analysis combining:

• • Accurate user addresses
• • Store locations
• • Usage frequency and time zones

Such data has already been utilized in certain cases to provide detailed insights supporting regional transportation policy.

■Naohisa Fukuda, Representative Director-President and CEO, commented:
"Surpassing JPY 5 billion in cumulative FPoS Local Payments represents not merely an expansion in transaction volume, but the transition of a nationally certified trust infrastructure into the stage of full-scale social implementation as local infrastructure.

By obtaining certification under the Digital Signature Act and operating within the framework of the Digital Agency, JCI has built a secure digital ID environment anchored by the My Number Card through its digital certificate platform.

This is not merely a payment service; it is "digital public infrastructure" that supports local economies.

As Japan faces a declining population, mechanisms that retain funds and data within communities are indispensable. FPoS will continue to expand as a foundation that supports regional sustainability from both economic circulation and data utilization perspectives."

■ Future Outlook
In many parts of Japan, population decline has intensified concerns that essential services — including retail (daily necessities), transportation and logistics, healthcare, and nursing care — may become unsustainable. Both the national government and local governments have initiated various efforts to maintain community functions.
To sustain local economies, it is essential not only to circulate funds locally but also to visualize, analyze, and incorporate local economic data into policymaking.

FPoS Local Payments go beyond a simple local currency system and serve as a "local digital economic infrastructure" supporting both financial circulation and data utilization. JCI aims to further expand the number of participating communities and the overall transaction scale going forward.

About Japan Communications Inc. (JCI)
Japan Communications Inc. (JCI), founded in 1996, is a pioneer who created the MVNO market and has brought innovation to the telecommunications industry. While JCI has established a stable profit model in their main business, simple and rational mobile communication services, JCI is aiming for further growth. JCI has strengths in patented technologies such as the mobile leased line "Closed SIM-to-SIM Communication" and the digital authentication technology "FPoS," and is focusing on providing mobile communication services and digital authentication infrastructure based on the authentication technology. The PCI DSS-certified mobile leased line is adopted by high-security sectors, such as police and bank. The FPoS supports security at the highest global standards and convenience. Under the mission of "carrying bit in safety and security," JCI is aiming for developing social infrastructure such as secure mobile environment beyond national borders and is working on sustainable growth and improving corporate value.