PayPay moves into life insurance with T&D Financial stake deal
The SoftBank Group payment unit will spend about ¥130 billion for a 70.2 per cent stake as it moves to expand its app-based financial services.
- PayPay is entering the life insurance market by acquiring a 70.2% stake in T&D Financial Life Insurance Co. for approximately ¥130 billion.
- The acquisition is part of PayPay's strategy to broaden its financial services and leverage its 74 million user base to offer asset-building products.
- The transaction is scheduled to be completed on October 1, 2027, with PayPay planning to purchase the remaining shares at a later date.
PayPay Corp., the smartphone payments company under SoftBank Group Corp., said on Thursday, June 4, that it will move into the life insurance market by acquiring T&D Financial Life Insurance Co.
The company will buy a 70.2 per cent stake in the insurer, a unit of T&D Holdings Inc., for around ¥130 billion.
The transaction is scheduled to be completed on October 1, 2027, with PayPay expected to purchase the remaining shares later.
PayPay is seeking to broaden its financial services business by adding life insurance, aiming to tap demand for asset-building products and strengthen customer ties within its “economic sphere”.
As of May, PayPay had more than 74 million registered users across its cashless payment and other services.
Through its payment app, the company already provides financial services including credit cards, banking and securities, and is also considering offering insurance products on the platform.
T&D Financial focuses on savings-type insurance and mainly sells whole life insurance and other products through bank counters.
The insurer plans to pursue growth by making use of PayPay’s customer base and financial services.
T&D Holdings intends to use proceeds from the sale for strategic investments and shareholder returns, as competition in the insurance sector intensifies amid rising interest rates.
[Copyright The Jiji Press, Ltd.]
