Coiney, a Japan-based payment processing service backed by marketing firm Dentsu, has agreed to merge with Japan-based online shop platform Stores.jp to form a new company called Hey, The Bridge has reported.
Founded in 2012, Coiney produces a handheld terminal that connects to a smartphone or tablet to accept transactions from credit cards and the WeChat Pay mobile service. It also operates a platform that allows merchants to easily accept credit card payments online.
Stores.jp was launched in 2012 by online services provider Bracket, itself founded in 2008. The company’s technology enables merchants to set up and operate an online store in return for a monthly fee.
Bracket was acquired by online retailer Start Today in 2013. The merger with Coiney appears to relate only to Stores.jp, though that could not be confirmed.
Coiney and Stores.jp hope the merger will enable them to better target small businesses across rural areas in Japan and attract social media influencers as merchants. They will also launch new services to allow merchants to improve their business and customer service.
Naoko Samata, co-founder and CEO of Coiney, has been appointed executive vice-president of Hey, while Yusuke Sato, director of marketing technology firm FreakOut Holdings, is president. Coiney had raised a total of $21m in equity and debt financing.
Payment services firm Credit Saison supplied $5m for the company in August 2013 that was followed by public-private partnership Innovation Network Corporation of Japan (INCJ) investing $8m two months later.
CyberAgent Ventures, the investment arm of internet company CyberAgent, had already backed a seed round of undisclosed size in 2012 alongside East Ventures and Anri.
Coiney secured $7.1m from Dentsu Digital Holdings, the corporate VC arm of marketing firm Dentsu; SBI Investment, a unit of financial services firm SBI Group; and INCJ in February 2017, with Seibu Shinkin Bank supplying debt financing.