PayPay to Enter Life Insurance Business

Tokyo, June 4 (Jiji Press)–PayPay Corp., a smartphone payment firm under SoftBank Group Corp., said Thursday that it will enter the life insurance business by acquiring T&D Financial Life Insurance Co. PayPay will acquire a 70.2 pct stake in the T&D Holdings Inc. unit for about 130 billion yen. The deal is expected to close on Oct. 1, 2027. PayPay is expected to acquire the remaining shares in the future. By adding life insurance to its financial services lineup, PayPay aims to capture demand for asset building and bolster its grip on customers through its so-called economic sphere. As of May, PayPay had more than 74 million registered users of its cashless payment and other services. The company offers a wide range of financial services, including credit cards, banking, and securities, through its payment app, and is considering making insurance products available on the app as well. T&D Financial specializes in savings-type insurance products and offers whole life insurance policies and other products primarily through bank counters. The insurer aims to grow by utilizing PayPay’s customer base and financial services. It plans to use the proceeds from the deal for strategic investments and shareholder returns at a time when rising interest rates are intensifying competition in the insurance industry. END [Copyright The Jiji Press, Ltd.]