Live Max, Agoda, NTT Data, NETSTARS, Mitsubishi UFJ NICOS, and Mastercard announce that will begin introducing corporate payments using Mastercard virtual card numbers (VCN^*1) at 168 LiveMax hotels nationwide from October 2, 2024.

Under this system, Agoda issues a VCN based on travelers’ booking information, and the VCN payment is processed through straight-through processing (STP^*2) by NETSTARS. This enables LiveMax hotels to make virtual card payments directly without manual intervention.

This simplifies payment processing and reconciliation at LiveMax hotels, reduces human errors, increases operational efficiency in the billing process, and optimizes cash flow. It also reduces the risk of uncollected payments and contributes to improved productivity. Additionally, the use of STP solutions and VCNs ensures secure payments that significantly reduce the risks of fraudulent use and chargebacks.

Rei Tanaka, Director of Live Max said:

“We are very pleased to introduce VCN payments as a new solution in the Japanese hotel industry through our collaboration with Agoda, NTT DATA, NETSTARS, Mitsubishi UFJ NICOS, and Mastercard. Leveraging our experience in hotel operations, we will provide feedback on the VCN payment solution’s implementation and promote its benefits, contributing to the adoption of VCN payments in Japan.”

Hiroto Ooka, Associate Vice President of North Asia at Agoda, said:

“With this payment solution, we will equip hotels with the necessary technology to effortlessly integrate VCN payments while benefiting from our premier marketing programs. This initiative aims to enhance the visibility of accommodations, drive an increase in bookings, and help travelers see the world for less.”

Shinichiro Nishikawa, General Manager of Global Payments & Services Division, Payments Business Group, NTT Data said:

“We are very pleased to be working with Agoda, NETSTARS, Mitsubishi UFJ NICOS, and Mastercard to provide VCN payments to LiveMax and NTT Data which has been providing cashless payment solutions to many merchants for many years, aims to widely deploy VCN payments to lodging businesses in the future based on the achievements of this case study. We will continue to contribute to the digital transformation of payments in Japan to improve the operations and cash flow of lodging businesses, which are still suffering from the lingering effects of the Corona disaster and labor shortages.”

Tsuyoshi Ri, President and CEO of NETSTARS, said:

“We are pleased that our multi-cashless payment solution can contribute to the hotel’s payment and billing efficiency. Our company will continue to drive the digital transformation of payment operations by leveraging our experience and technological strengths We will continue to collaborate with many hotel chain partners to promote VCN payments.”

Norihiko Sumita, President, Executive Officer at Mitsubishi UFJ Nicos Co Ltd.

“This initiative is a first for us, and we believe it will be a major step forward in advancing the digital transformation of billing and settlement operations, in addition to the cashless system for corporate customer transactions at hotels. We will promote VCN payment solutions to hotels in Japan by leveraging our long-cultivated know-how in the credit card business and our extensive merchant network and will hotels in Japan to improve operational efficiency and attract more customers.”

Ken Uchiyama, Country Manager, Japan, at Mastercard said:

“The use of VCN in the Japanese market is gaining momentum, with many hotels in the travel industry adopting them. This introduction of VCN payments not only optimizes business-o-business transactions between Agoda and Live Max group hotels but also represents a crucial step in advancing the digital transformation of the travel industry as a whole. Mastercard, through collaboration with our partners, will continue to support the tourism industry and regional revitalization, ensuring that domestic and international travelers can enjoy safe, secure, and convenient cashless payments.”

Mastercard VCN payments are gaining traction, particularly in the international travel industry, due to the growing number of business partners and the complexity of distribution channels driven by globalization. This adoption is helping to streamline payments between travel agencies (both traditional and online), travel management companies (TMCs), and hotels. Currently, VCN payments are used daily at hotels in over 200 countries worldwide.

^*1 VCN stands for Virtual Card Number, which is issued as a virtual sub-number based on a corporate Mastercard credit card (purchasing card). VCNs can be issued multiple times within the credit limit of the parent card, and can be configured for single-use transactions or limited to specific numbers of transactions or periods. Restrictions and conditions, such as ‘available amount’ or ‘usage period,’ can be set for each VCN. All charges are billed collectively to the parent cardholder’s account.

^*2 STP refers to a series of processes, from payment approval to payment, that take place automatically without the supplier having to manually input VCN card numbers and other information.