Osaka court approves bankruptcy filing by credit card processor Zentoshin

Research firm Teikoku Databank reported that the company’s liabilities totaled about ¥125,929 million, making the case Japan’s largest bankruptcy of the year.

Company background Zentoshin was established in September 2006 and operated from Osaka. It provided a service that paid sales proceeds to credit card merchants before the merchants received funds from credit card companies and also contracted to sign up new merchants.

Revenue declined during the COVID-19 pandemic. In 2024, one employee was arrested on suspicion of signing a merchant contract using another person’s name, and the company was referred to prosecutors in connection with the incident.

Operations end Zentoshin decided to cease operations after concerns about its creditworthiness emerged. The court approval allows the company to begin formal bankruptcy procedures.