Even in Japan, where the cashless ratio has risen to around 40%, steady demand remains for completing online payments without a credit card. Carrier billing adds the purchase amount to the phone bill of one of the three major carriers, NTT Docomo, au (KDDI), or SoftBank, making it one of the most familiar payment methods for cardless users and younger consumers buying digital content. Because all that is required is a mobile phone line, the barrier to entry for payment is very low.

For merchants in Korea selling digital content in Japan that centers on small, recurring purchases, such as game items, webtoons and e-books, or video and music subscriptions, carrier billing is especially effective to adopt. On the other hand, high-value physical goods can run into the carriers' monthly payment limits (which vary by age), so it makes sense to pair it with card and QR payments, each covering a different role.

The consumer selects their carrier (Docomo, au, or SoftBank) at checkout and completes carrier account authentication, after which the payment is authorized and the amount is added to the following month's phone bill. Hecto Financial collects in JPY the funds the carrier recovers together with the phone bill, then converts and settles to the Korean merchant in USD, KRW, or JPY as chosen under the contract. Payment limits and authentication methods differ by carrier, so these should be confirmed before integrating.

Carrier billing involves review by each of the three carriers individually, but through Hecto Financial a Korea-based corporate merchant can explore adoption without contracting directly with each carrier. Because approval criteria vary by content type, prior consultation is especially important.

• Business registration country

  Confirm contract eligibility as a merchant registered in Korea

• Sales channels

  The integration approach differs depending on whether you are online-only or also include physical stores in Japan

• Product categories

  Confirm in advance whether your products fall under categories restricted by the Career Billing (Docomo, Softbank, Au) operator's merchant policy

• Local regulatory compliance

  Confirm compliance with Japan's payment and foreign-exchange regulations (see official sources below)

Carrier billing works by having the carrier collect the amount the consumer paid together with the following month's phone bill, so the flow of funds takes one extra step compared with card payments. Hecto Financial collects the recovered yen proceeds, converts the currency, and settles to the Korean merchant in USD, KRW, or JPY as chosen under the contract, with the cycle and fees set by the contract terms. Because refunds are governed jointly by each carrier's rules and Hecto Financial's operating policy, processing can take longer, so this should be confirmed in advance.

• Bank of JapanProvides official information on Japan's payments and payment systems.
• Japan Ministry of Economy, Trade and Industry (METI) cashless policyOfficial data on the cashless payment ratio and other aspects of the Japanese government's payment policy. If this page's content differs from actual regulations, the official source takes precedence.