Rakuten launches its Club R Pay payment service

The Japanese group is launching Club R Pay, an integrated payment and cashback service. It facilitates and accelerates the online purchase of products from around 2,000 Rakuten partner brands and shops. Rakuten is serious about competing with PSPs.

FACTS

• Developed by Rakuten's Paris-based teams, the Club R Pay service has just been launched in France, the first market where it will be tested. It will also soon be extended to the European market.

• The new Club R Pay payment system launched by Rakuten is universal and does not require any particular adjustments from partner brands and retailers.

• The consumer places an order online on a Rakuten partner site and pays by selecting "Club R Pay":

  • A virtual card is then created for each transaction and the user only has to enter the amount of the order.

  • As the customer's bank and personal details are already stored in Rakuten's data, the customer is invited to confirm the purchase to finalise the order.

  • The user will then receive a cashback of 5 to 35% of the amount of the Rakuten purchases

  • Each customer can define the maximum number of transactions possible

  • For added security, they can also set the lifetime of their virtual card.

  • Rakuten in turn receives a commission for each transaction.

• Club R Pay is now available at Asos, H&M, Apple, Puma, Marionnaud, Bose, Conforama, Electro Dépôt, About You, Lenovo, Smartbox, Lego, Na-kd, Maison du monde, Ouigo, Hotel. com, Huawei, among others. Club R Pay also appears when purchasing second-hand goods.

CHALLENGES

• Simplifying payment: the payment stage is a crucial step for online purchases. Fabien Versavau estimates that "three out of four consumers have already abandoned their shopping cart because of payment methods deemed complicated". Club R Pay aims to simplify, secure and increase the flexibility of online payment.

• Digitalising money: Rakuten is also working to encourage the digitalisation of money by developing its own kitty banks, which will be made available to customers on all partner sites, and is working on the use of cryptocurrency as a real means of payment.

MARKET PERSPECTIVE

• The circular economy is on the rise, with consumers increasingly turning to second-hand products. Second hand is also particularly boosted with the current inflationary environment. Of the sales made during Black Friday, 56% were second-hand goods and the volume of sales doubled between 2020 and 2022.

• After Club R Pay, Rakuten France hopes to launch new offline experiences "that will highlight the customer experience of 2023/2024", says the French CEO. The group wants to reward its customers who have bought in-store and online in the near future.