Platform Use Case

Use Case applies to Platform Businesses

Below is an overview of Platform Use Case.

Merchant Account pre-setup

EntityAccount type in Platform ModelMerchant of Record (MoR)*Country of the business entityBusiness example
YouPlatform Merchant (Platform Business)NoJapan onlyShopify Payment
Your SellerSeller MerchantYesJapan onlySeller using Shopify Payment

*MoR stands for “Merchant of Record”, it is the entity that accepts payments from customers directly when checkout.

You can regard the Platform Merchant (Platform Business) account as a parent-level account, and regard Seller Merchant as a child-level account. Essentially, Platform Merchant can manage all the capabilities of Seller Merchant.

Merchant Account setup - Platform Use Case

Merchant Account onboarding

You have to register a "Platform Merchant (Platform Business)" account in KOMOJU for your business entity via KOMOJU's dashboard. Below is the overview of the steps:

  1. Contact our Account Manager or inquiry form to ask for a credential to log in KOMOJU's dashboard to access the "Test" environment.
  2. Integrate our APIs and create mock Seller Merchant accounts under your Platform Merchant account via our APIs, and execute further tests to ensure the integration goes well.
  3. Start the Live Application for your Platform Merchant (Platform Business) account.
  4. Once your application passes our review, you're ready to generate a Seller Merchant account for each seller via our APIs in "Live" environment.
  5. Once the Seller Merchant account passes KOMOJU's review, you can start processing payments between you and your seller.

Learn more details:

End to End fund flow

Platform Use Case - Fund Flow
  1. Customer checkouts on Seller Merchant's website. At the same moment, Platform Merchant should request KOMOJU’s Payment API to pass essential payment information and specify the amount of Platform Fee.
  2. KOMOJU will follow Platform Merchant's API request to process the payment under Seller Merchant's account because Seller Merchant is the MoR.
  3. KOMOJU will split the payment and transfer the Platform Fee specified in step.1 to Platform Merchant's account. Essentially, Platform Fee is the commission charged from Seller Merchant by Platform Merchant.
  4. KOMOJU will charge the Payment Processing Fee from Seller Merchant automatically based on the fee rate in the Owned Payment Methods of Seller Merchant.
  5. According to the designated payout cycle, KOMOJU will pay the accumulation of Platform Fee out to Platform Merchant's bank account and the accumulation of revenue to Seller Merchant's bank account respectively. (Note: The payout cycles of Platform Merchant and Seller Merchant are not necessarily to be identical. You can learn more here.)

Payment processing

In Platform Use Case, you have to adopt "Seller Processing Model" to process payments.

Below is an example of creating and processing a payment between you and your Seller Merchant.

Create a Payment (seller processing model)
  • Platform Merchant can specify the amount of Platform Fee in each payment to charge from Seller Merchant.
  • Seller Merchant pays the Payment Processing Fee to KOMOJU. The fee rate is specified in Owned Payment Methods of Seller Merchant.

To learn further payment-related actions (eg: Refund, Chargeback, Balance transfer...etc) of Seller Processing Model, please refer to Seller Processing Model (for Platform Use Case).

Payment Method setup and Processing Fee Rate setup

(1) Common Payment Methods

  • Platform Merchant (Platform Business) needs to set “Common Payment Methods” up. It contains
    1. All available payment methods that your Seller Merchants can select
    2. The processing fee rate of each payment method in Common Payment Methods will be the default rate that applies to all your Seller Merchants
  • KOMOJU provides 8 mainstream Japanese payment method options for Common Payment Methods
    1. Credit Cards (Japan) (including Visa, MasterCard, JCB, AMEX, and Diners)
    2. Bank Transfer
    3. Pay-Easy
    4. PayPay
    5. LINE Pay
    6. Merpay
    7. Konbini Payment(s)
    8. 7-Eleven

(2) Owned Payment Methods

  • Each Seller Merchant has its “Owned Payment Methods”. However, Platform Merchant should specify which payment methods Seller Merchant wants to adopt when onboarding it on KOMOJU.
  • Owned Payment Methods contains:
    1. The payment methods by which this Seller Merchant allows customers to checkout
    2. The processing fee rate that KOMOJU will ultimately charge from Seller Merchant in every captured payment

(3) The correlation between Common Payment Methods and Owned Payment Methods

correlation between Common Payment Method and Owned Payment Methods
  • Only payment methods in Common Payment Methods are available for Owned Payment Methods. For example,
    • If Platform Merchant selected Credit Cards (Japan), PayPay, and LINE Pay as its Common Payment Methods
    • Then, Seller Merchant can only pick any number of methods out from Credit Cards (Japan), PayPay, and LINE Pay as its Owned Payment Methods

(4) Payment Processing Fee

Payment Processing Fee - Platform Use Case
  • The processing fee rate in Common Payment Methods will be the default fee rate applies to Owned Payment Methods. Continue with the previous example:
    • If Platform Merchant has VISA & Mastercard (Japan) 3.2%, PayPay 3.4%, LINE Pay 3.5% as processing rates in its Common Payment Methods.
    • Then, Seller Merchant selects VISA & Mastercard (Japan) & PayPay in Owned Payment Methods, the fee rate will be 3.2% and 3.4% respectively.
  • Seller Merchant should pay the Payment Processing Fee to KOMOJU.
  • Payment Processing Fee = Payment amount * payment processing fee rate. The payment processing fee rate follows the fee rate under Seller Merchant's Owned Payment Methods.

Sub-merchant management fee setup

(1) Concept

Sub-merchant management fee rate
  • Platform Merchant pays Sub-merchant Management Fee to KOMOJU. It is charged at the beginning of every month, and the cutoff period is the entire previous month.
  • The fee rate is a fixed rate. However, the aggregation of the fee depends on the number of “active” Seller Merchants in the previous month.
    • Definition of “active”: In any month that a Seller Merchant participated in one or more than one captured payment.

(2) Fee calculation

  • Sub-merchant Management Fee = Fixed fee rate * Number of active Seller Merchants in the previous month
  • Example:
    • Assume Platform Merchant has three Seller Merchants: A, B, and C. Besides, the fixed fee rate is ¥1,000.
    • Last month, A and B participated in a captured payment.
    • At the beginning of this month, Platform Merchant will be charged ¥2,000 as Sub-merchant Management Fee (¥1,000 * 2 = ¥2,000)