Softbank's PayPay buys 40% stake in Binance's Japan to deepen push into digital payments

Oct 9 (Reuters) - SoftBank's 9984.T payments app operator PayPay Corp has acquired a 40% equity stake in Binance Japan, the Japanese subsidiary of Binance said on Thursday, without disclosing details of the transaction.

PayPay is the latest Japanese firm looking to grow its digital asset offerings in light of an anticipated relaxation of regulations in Japan and record high crypto asset prices that have sparked interest among industry players.

The deal would allow the two firms to work together on technology for cashless payments and digital assets. Binance Japan users would be able to make crypto purchases and withdrawals using PayPay Money.

SHIFT TO DIGITAL PAYMENTS

PayPay has played a role in encouraging Japanese consumers to move away from a long-standing preference for cash by offering rebates on payments through its mobile app.

PayPay's ownership is split between a number of SoftBank entities: wireless carrier SoftBank Corp 9434.T, the Vision Fund investment arm, and internet business LY Corp 4689.T, which is a joint venture between SoftBank and Naver Corp 035420.KS.

Laser Digital, a subsidiary of Japan's largest brokerage and investment bank Nomura Holdings 8604.T, is in the process of obtaining a licence for institutional crypto trading in Japan, a Laser Digital spokesperson said this week.

Binance entered the Japanese market in late 2022, with the acquisition of crypto exchange service Sakura Exchange BitCoin.

SoftBank said in August that its payments unit had applied to list American depositary shares in the United States, adding that PayPay would continue to operate as its subsidiary following the listing.

In March, Nikkei reported that the Japanese banking regulator planned to give crypto assets a legal status as financial products and would submit a bill to parliament as early as 2026 in that regard.