Tokyo, November 13, 2024 - Rakuten Group, Inc., Rakuten Card Co., Ltd., Mizuho Financial Group, Inc., Mizuho Bank, Ltd., UC Card Co., Ltd. and Orient Corporation today announced the formation of a business alliance that aims to transform Japan’s digital payment landscape.
In addition, Rakuten Group and Mizuho Financial Group (Mizuho FG) have entered into a share transfer agreement and shareholders agreement, as outlined in the Rakuten Card and Mizuho FG strategic capital and business alliance press release also announced on November 13, 2024.
1. Background and significance of this alliance
The Rakuten Group’s unique ecosystem is centered on membership, organically weaving its businesses together to promote cross-use and continuous engagement with multiple services by its members both in Japan and worldwide. By leveraging synergies across the ecosystem, including points, Rakuten maximizes the lifetime value of every member.
Mizuho is dedicated to creating a world where customers find Mizuho services to be the most comfortable and user-friendly for all their transactions by delivering services that offer even greater levels of convenience. Additionally, Orient Corporation (Orico) strives to continue to be a trusted partner for all its customers.
As announced on November 9, 2023, Rakuten Securities Holdings and Mizuho Securities have further strengthened their strategic capital and business alliance. Since then, Rakuten Group and Mizuho have worked to create new, innovative retail business models in the asset building and asset management fields, combining their financial expertise and leveraging the strengths of their fintech solutions.
Building on the momentum of this productive partnership, both Groups have engaged in extensive discussions on how to develop the most beneficial, convenient and relevant experiences for customers. As a result, Rakuten Group and Mizuho have decided to leverage the strengths of six key companies to develop new, highly convenient retail business models in the increasingly competitive payments industry that will strengthen customer loyalty and develop solutions that meet the needs of affiliate stores.
Together, the partners in this alliance aim to provide customers with more convenient and affordable shopping experiences while also offering services that help affiliate stores attract new customers and boost sales. The companies will collaborate on a range of initiatives to develop innovative payment services that are unlike anything currently in the market. These efforts are expected to stimulate consumption, enhance the corporate value of affiliate stores, promote corporate growth for alliance members and contribute to the overall further development of the Japanese economy.
2. Details of the business alliance
(1) Initiatives for retail customers
Mizuho Bank and Rakuten Card plan to issue a co-branded credit card in December this year, which will allow users to earn Rakuten Points and enjoy benefits for ATM fees. Additionally, in an upcoming major update to Mizuho Bank's Mizuho Mileage Club planned for next spring, the companies will consider introducing even more rewarding benefits, including integration with a new point service.
Furthermore, the Groups are considering introducing a digital installment payment feature* on Rakuten Ichiba, allowing Rakuten members to easily apply for and receive instant approval, as well as repeatedly use the service. Additionally, discussions are planned on the feasibility of adding a digital installment payment feature to Rakuten Card, as an additional payment option tailored to customer needs.
*A long-term installment payment service utilizing card limits, based on Orico's proprietary AI credit assessment (performance-based credit assessment).
(2) Initiatives for corporate customers and affiliate stores
With further transformation in corporate payments anticipated over the coming years, both Rakuten Group and Mizuho are considering providing new collaborative solutions (such as the streamlining of collection operations and the digital transformation of settlement operations) by combining payment functions for affiliate stores and transaction data held by Rakuten Group and Rakuten Card with Mizuho's expertise in corporate cash flow support and diverse portfolio of payment services.
Additionally, as part of these efforts, Rakuten Card, UC and Orico will leverage their collective expertise to explore issuing new corporate credit cards that enable more flexible credit provision for corporate clients, particularly Rakuten Group’s network of approximately 900,000 affiliate companies involved in its portfolio of services.
(3) Initiatives for enhancing business operations
Rakuten Group companies, Mizuho Financial Group companies and Orico will collaborate to streamline common operations such as acquiring and back-office tasks in their credit card businesses, as they aim to achieve even higher value-added services.
For acquiring operations, the alliance members will explore possibilities for mutual access and development of affiliate stores by effectively utilizing the millions-strong affiliate store networks held by the companies.
In response to the growing social issue of credit card fraud, both Groups will also share information on fraud tactics and countermeasures, and seek to contribute to the reduction of fraudulent activities across the entire credit card industry.
Going forward, both Rakuten Group and Mizuho Financial Group will explore a range of collaborative opportunities beyond these initiatives to further elevate their corporate value and drive mutual growth.