Google looking to enter Japanese fintech market with acquisition

Karthik Subramanian

Google is in talks with cashless payments provider Pring to acquire all its company shares as it looks to enter into the fintech segment in Japan in a big way.

google

According to a report in Nikkei, Google is planning this move so that it need not depend on third parties for payments and other related services and it would be able to offer these services internally.

Google and its investment partners are looking to acquire all the company shares of Pring, which is currently owned by Mizuho Bank, for $180 million to $200 million. Though Google has its own Google Pay services in Japan, it has to depend on other companies for processing credit card and pre-paid card transactions which increase cost and also reduces control and reliability.

The Japanese cashless transactions market is not fully developed as yet. The penetration of cashless payments is still only 30% which means that there is a lot of space for growth. With cashless payments expected to rule the roost in the coming months all around the world. it seems Google is looking to pick its cherries by looking for markets where there is still space to go and Japan seems to be a good choice considering that the technology in the payments space is still pretty far behind when compared to the rest of the world.

Pring currently operates both on mobile as well as computers as it offers payments, cash transfers, and other related services to its client base. It also has onboarded over 400 merchants on its platform who use it for making payments to customers and other merchants as well.

With this acquisition, Google can be expected to take over the licenses that Pring has which means that it would be able to undertake all the services currently operated by the company and more, once the acquisition goes through. This is another boost for the payments industry which has seen a lot of interest over the last few months as more and more users choose cashless and digital payment methods over other traditional systems, even for basic and necessary payments.

The pandemic has been one of the main drivers for this move and the payments industry is reaping the benefits of this change in the attitude of the users. But with the majors expected to enter into the industry and also try and consolidate it with acquisitions, the smaller players are likely to feel the pressure.

  • Read this next

    Retail FX

    Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

    Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

    Retail FX

    Lark Funding reopens to US traders, MyFundedFX picks cTrader

    Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

    Institutional FX

    Cboe FX volume falls to lowest level since summer

    Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

    Retail FX

    ThinkMarkets secures lucrative DFSA license in Dubai

    Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

    Digital Assets

    New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

    Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

    Digital Assets

    Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

    Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

    Digital Assets

    Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

    Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

    Institutional FX

    Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

    Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

    Industry News

    Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

    In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

    <