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Designing
New Context
Designing
New Context
Accelerating Global Distribution of Digital Content via a One-Stop Selling Solution
– Digital Garage, Inc. (TSE Prime section: 4819; HQ: Tokyo; Representative Director, President Executive Officer and Group CEO: Kaoru Hayashi; Digital Garage) announced the launch of its global service for ”AppPay,” Japan’s No.1 third-party payment platform*1, which the company has been providing since 2023.
– This service provides game and app publishers with Merchant of Record (MoR) functions, under which Digital Garage will serve as the legal seller on their behalf in countries worldwide. It offers one-stop solutions for complex and diverse operations, including compliance with laws and regulations in each country and region, payment processing, tax filing, and refund management, thereby enabling global third-party payments.
*1: Based on the number of game and app titles introduced among third-party payment services operating in Japan (as of September 2025, Digital Garage research).
▽ AppPay service website: https://service.app-pay.jp/en/
■About the Global Service of “AppPay”
For Japanese game and app publishers, transactions with Digital Garage reduce the burden of contracting with overseas payment providers and foreign exchange operations. In addition to MoR functions, publishers can also use services such as multilingual/multicultural site development, user support, and marketing/data analysis in Japanese, allowing them to focus on their core businesses, including development and operations.
“AppPay” has already been introduced to more than 40 game titles in Japan, contributing to diversifying payment channels and optimizing revenues. Going forward, starting with the introduction by 2 major game companies, Digital Garage will further expand the service, contributing to revenue growth not only in Japan but also globally. In addition, by providing MoR functions to overseas game and app publishers, the service will expand third-party payments in Japan.
Digital Garage will continue to evolve “AppPay” into a global platform, contributing to the global business expansion of game/app publishers and other digital content providers. Digital Garage Group is also promoting the group strategy “DG FinTech Shift,” which integrates payments, data, and technology to contribute to the business growth of a wide range of companies in a time of significant social and industrial transformation. This initiative is part of that group strategy.
■ About MoR (Merchant of Record)
MoR is a framework in which the legal responsibility for selling digital content, such as in-game items, is assumed on behalf of publishers. Under this scheme, the MoR acts as the seller to users in each country, ensuring compliance with local e-commerce and consumer protection laws, supporting various payment methods in each country, and handling the calculation and payment of taxes such as consumption tax and VAT. This allows publishers to outsource complicated operations associated with global expansion.
■ Comment
<Junichi Sakishima, Executive Officer, Head of App Business Division, Digital Garage, Inc.>
In 2023, we were among the first in Japan to launch the third-party payment service “AppPay” and have steadily expanded the number of titles introduced, mainly in game apps. The business environment surrounding digital platforms is changing worldwide, and in Japan, the Act on Promotion of Competition for Specified Smartphone Software will come into effect in December 2025. Together with innovations such as AI, these changes are expected to create new business opportunities.
On the other hand, when selling digital content globally, not only payment operations but also complicated tax and compliance tasks become a major burden and management challenge for many publishers. Against this backdrop, with “AppPay,” which has built a track record in Japan, now going global, we can provide an environment where more game and app publishers can concentrate on their core businesses. I am confident this will lead to building a new ecosystem that supports the sustainable growth of the entire entertainment industry.
■ AppPay Service Overview
“AppPay” is Japan’s first*2 online shopping mall service that enables the purchase of digital content for multiple apps outside of app stores. It provides functions such as “payment systems,” “web pages (CMS-based generation),” “customer support,” and “marketing.”
App publishers can easily build a third-party payment system without spending time and money on web page production or system development, and can significantly reduce the burden of payment fees. Users can use multiple payment methods, including credit cards, simply by registering with “AppPay,” enabling easy purchases across a variety of apps.
The payment system for “AppPay“ utilizes the payment services provided by DG Financial Technology, a group company. With a robust, stable, and high-speed infrastructure handling over 7.5 trillion yen in annual transaction volume, the system supports the “DG FinTech Shift” initiative while accelerating innovation in the smartphone industry.
*2: As of June 3, 2024, according to our research, we are the first domestic provider of a marketplace for game items.
▽ Inquiries from game and app publishers regarding “AppPay”: app-pay@garage.co.jp
■ Company Profile
Name: Digital Garage, Inc.
Representative: Kaoru Hayashi, Representative Director, President Executive Officer and Group CEO
Head office address: DG Bldg., 3-5-7 Ebisu Minami, Shibuya-ku, Tokyo
Shibuya PARCO DG Bldg., 15-1 Udagawa-cho, Shibuya-ku, Tokyo
Date founded: August 1995
Digital Garage, Inc. is the leading payment service provider in Japan. With the corporate purpose of “Designing ‘New Context’ for a sustainable society with technology,” Digital Garage operates payment business services for various comprehensive payment platforms in Japan. Digital Garage also runs a marketing business providing one-stop solutions in both the digital and real worlds, as well as a startup investment and development business for approaching promising startups and technologies in Japan and overseas. Digital Garage is listed on the Tokyo Stock Exchange Prime Market (TSE Prime: 4819). For more on Digital Garage, visit garage.co.jp/en