SoftBank Corp. and Sumitomo Mitsui Financial Group Inc. are forming a comprehensive digital banking partnership that will integrate their respective payment platforms, intensifying competition in Japan’s rapidly evolving fintech landscape.
The collaboration will make SoftBank’s PayPay smartphone payment service available through Sumitomo Mitsui Banking’s Olive financial app, according to sources familiar with the matter. The partnership, expected to be formally announced soon, will connect PayPay’s 69 million users with Olive’s 5 million account holders.
Beyond payment integration, the companies plan to allow customers to exchange points between their respective reward programs. The alliance will also include joint initiatives in data utilization and generative artificial intelligence development.
This partnership represents the latest convergence between traditional banking institutions and technology companies in Japan as web-based financial services continue to gain traction. For Sumitomo Mitsui, Japan’s second-largest banking group, the deal provides access to SoftBank’s massive digital payment user base.
The alliance comes at a time when Japanese financial institutions are racing to expand digital offerings amid changing consumer behaviors and increasing competition from pure digital players. By consolidating their services, analysts suggest the companies are positioning themselves more competitively against emerging fintech rivals.
