Sumitomo Mitsui Financial Group (SMFG)’s Sumitomo Mitsui Banking Corporation (SMBC) announced that the bank formed a capital and business alliance with GMO Payment Gateway Inc. which is a subsidiary of GMO Internet Group on June 9.
Japanese electronic commerce industry has been expanding with a growth rate of 10% in the past years, reaching a 12.8 trillion JPY industry in 2014. The group believes that Japanese EC industry is promising with significant potential because Japan’s adoption rate of electronic commerce is only 4.37% and innovative technologies and services for internet business have emerged recent years.
In this market environment, SMFG Group and GMO Payment Gateway aim to meet needs for payment in the EC industry and gain further market share to build a solid position in a payment sector.
In addition, 2 companies are planning to develop new business domain and offer high-value-added service by utilizing their resources and know-how in the future.
SMBC and GMO Payment Gateway will jointly establish a new company which provides payment processing service in October 2015.
To operate and maintain the business alliance smoothly, GMO Payment Gateway will conduct allocation of new shares to SMBC and GMO Internet Group to raise about 8 billion JPY. SMBC will pay 3,867,473,600JPY for 1,250,800 shares, GMO Internet will pay 4,132,458,000 JPY for 1,336,500 shares by June 25.
(Source: Sumitomo Mitsui Financial Group)