(L-R) GMO-FG CEO Kentaro Sugiyama and Soft Space CEO Joel Tay Jin Ghee
Soft Space, a Malaysian fintech-as-a-service (FaaS) company, has received an undisclosed investment from its long-standing partner, Japanese payment processing company GMO Financial Gate (GMO-FG).
This investment comes ahead of Soft Space’s upcoming Series C funding round and is aimed at expanding cashless payment solutions in various industries in Japan, including transportation, hospitality, and the food and beverage (F&B) sector.
Also Read: Malaysian fintech-as-a-service firm Soft Space closes US$31.5M Series B1 round
With Japan’s cashless payment market estimated at US$650 billion, Soft Space, founded in 2012 and headquartered in Kuala Lumpur, offers contactless payment solutions and white-label e-wallet services to merchants and consumers. The company operates in over 30 global markets and partners with more than 90 financial institutions.
By leveraging GMO-FG’s client network, Soft Space aims to explore new opportunities in sectors traditionally reliant on cash transactions, especially with Japan being a popular destination for international tourists. This shift towards cashless payments is expected to increase tourist spending in the country.
Kentaro Sugiyama, CEO of GMO-FG, commented, “Since our collaboration began in 2018, Soft Space and GMO-FG have worked closely together to integrate Soft Space’s SoftPOS services with GMO-FG’s payment network, initially focusing on the transit segment. This capital alliance marks a deeper collaboration to expand Japan’s face-to-face cashless payment market.”
Also Read: Japan’s JCB injects US$5M into Malaysian fintech firm Soft Space
Last year, Soft Space announced the completion of its Series B extension round, raising US$31.5 million with Southern Capital Group as the lead investor. Other participants included returning investor transcosmos, strategic investor JCB, and Hibiscus Fund.
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The article Japan’s GMO Financial Gate infuses capital into Soft Space was originally published on e27.