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SoftBank and Paypal created a joint venture in Japan

Softbank and Paypal (subsidiairy of eBay) just announced the creation of a joint venture dedicated to e-commerce, to expand U.S. e-commerce firm’s services to Japan.

Each firm will invest $ 12,5 million in the new venture, and will own half of the share. This new entity, called “Paypal Japan“, will be exclusively dedicated to e-commerce, and PayPal’s existing business in Japan will also be folded into the joint venture. However, Softbank and paypal have said that the solution “Paypal Here” will also be proposed really soon in Japan.

For remind, “Paypal Here” includes a software application, a credit card reader that will be plugged to an ios or Android device. This dongle allows you to pay in the shop that will have compatible terminal.

For Softbank, which own Yahoo Japan, this operation will enable the company to develop its online shopping portal and will help providing a comprehensive platform including payment to the users mobile.

For Paypal, this partnership will help to reach new resale channel, and especially those of SBE, or big accounts.

According to John Donahoe, eBay’s president “we believe that shopping should be easier, so we are delighted to have signed a partnership with Softbank to bring innovation in payments and so revolutionize trade in Japan“.

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