Mizuho Financial Group is in talks to acquire a stake in Rakuten Group’s credit card unit, Rakuten Card, as the e-commerce giant aims to leverage Mizuho’s extensive customer network to expand its corporate services. The strategic alliance would mark a significant move for Mizuho, which has lagged behind other Japanese megabanks in the credit card space. The two companies plan to finalize the details of Mizuho’s investment by the end of the year.
Rakuten, Japan’s largest credit card issuer with over 30 million cards, had considered restructuring its fintech business but canceled those plans, opting instead to partner with Mizuho. The potential investment is seen as a way for Rakuten to strengthen its financial business and improve cash flow, particularly as the group manages its 2 trillion yen ($14 billion) debt from its mobile phone venture.
Mizuho, which already owns 49% of Rakuten Securities, hopes this deal will help it re-enter the credit card market after dissolving a previous partnership in 2019. Rakuten Card will remain a core subsidiary of Rakuten Group despite the potential sale of a stake.
