PayPal and SoftBank announce 50-50 Joint Venture, at $25M combined, in Japan for new PayPal Here service http://bit.ly/KUF9qY
Read the blog post by PayPal President David Marcus, a first ever JV for the company [Eds]
PayPal and SOFTBANK announced today that the two companies plan to establish a joint venture company, “PayPal Japan”, to build a digital payments business that will drive the future of commerce in Japan. In addition, PayPal and SOFTBANK today announced PayPal Here in Japan, the fifth country to receive this global mobile payment solution that is already available in the USA, Canada, Hong Kong and Australia. PayPal Here will enable millions of Japanese small businesses to grow their sales by accepting credit/debit cards and PayPal payments through a smartphone anytime, anywhere.
PayPal and SOFTBANK, or their respective affiliates, plan to invest equally in the joint venture in the amount of JPY1 billion (USD12.5 million) each, representing an aggregate investment amount of JPY2 billion (USD25 million). PayPal and SOFTBANK will each be able to designate three directors of the joint venture for a total of six directors. Mr. Hiroaki Kitano, a senior vice president and director of SOFTBANK MOBILE Corp., is expected to serve as the CEO of the joint venture.
The joint venture will bring together the strengths of both companies – PayPal’s global online and mobile payment solutions with 110 million active accounts in 190 markets and 25 currencies, along with the SOFTBANK Group’s local market knowledge, 29 million mobile subscribers and vast distribution network including thousands of retail outlets and sales staff across Japan. By bringing together these global and local assets, the joint venture will provide the premier digital wallet for online, mobile and offline transactions to connect millions of Japanese consumers and merchants and expand the use of digital payment solutions, such as PayPal Here, in the Japanese market.