SmartBank has expanded its user base and product offerings with the goal of becoming a comprehensive financial platform like a bank. It recently introduced an AI receipt reading feature to transform its app into an AI-driven financial advisor and added a feature allowing users to connect their credit cards and bank accounts for a holistic view of their finances. The company, which obtained a license for money transfers and a prepaid payment instrument license, plans to diversify its revenue streams beyond interchange fees by implementing services like Buy Now Pay Later, subscription, and referrals.
Key takeaways:
- The Japanese government is pushing for an increase in cashless transactions, with a goal of reaching 40 percent by 2025. As of 2023, cashless transactions accounted for 39.3 percent of all spending in the country.
- Tokyo-based startup SmartBank, founded in 2019, supports this initiative by offering an app and services that facilitate the switch to cashless payments. The company targets individuals in their 20s and 30s, as well as married couples, and has over 1 million downloads.
- SmartBank recently raised 4 billion JPY ($26 million), with plans to use the new capital to double its staff from 49 to around 100 employees by 2025. The company has raised a total of 5.93 billion JPY ($38.5M) in equity and 1.1 billion JPY in debt since its inception.
- The company is expanding its services, recently introducing an AI receipt reading feature and allowing users to connect their credit cards and bank accounts to get a holistic view of their finances. It also plans to diversify its revenue streams beyond interchange fees, implementing services like Buy Now Pay Later, subscription, and referrals.