PayPal and SOFTBANK announced today that the two companies plan to establish a joint 50:50 venture company, “PayPal Japan”, to build a digital payments business in order to build the future of commerce in Japan. Both companies planning to invest equally in the joint venture the amount of JPY1 billion (about $12.5 million) each, with representing an aggregate investment amount of JPY2 billion ($25 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. In addition, the companies also announced that Japan will be the fifth country to receive this global mobile payment solution that is already available in the USA, Canada, Hong Kong and Australia.
“Our SOFTBANK partnership and launch of PayPal Here will make it easier for millions of merchants in Japan to grow their businesses and for consumers to easily pay anytime, anywhere,” said Mr. John Donahoe, president and CEO of eBay Inc. “We believe shopping and paying should be easy, and we’re excited to partner with SOFTBANK to bring payments innovation to Japan and revolutionize commerce.”
“We are very excited to support the growth of small businesses and empower anyone to be an entrepreneur with the launch of PayPal Here in Japan, one of the most advanced mobile markets in the world yet one where cash is still used for many transactions,” said Mr. David Marcus, President of PayPal. “By partnering with a fast-growing mobile Internet leader like SOFTBANK, we can bring our innovative, secure online and mobile payment solutions to market faster and at greater scale across Japan.”