PayPay Corporation has acquired PayPay Bank Corporation, transforming it into a subsidiary and enhancing its foothold in Japan's competitive digital banking landscape.

Information on the Target

PayPay Corporation has successfully acquired PayPay Bank Corporation, a move that transforms the latter into a subsidiary of PayPay. This transaction was completed after obtaining necessary approvals from relevant authorities in March 2025. The acquisition involved the purchase of both ordinary shares and class A preferred shares of PayPay Bank, previously held by Z Financial Corporation, which is the domestic intermediary holding company of LY Corporation.

As per the shareholding structure following the transaction, PayPay Corporation holds a significant majority of the ordinary and class A preferred shares, establishing control over PayPay Bank's operations and governance. The effective conversion of class A preferred shares into ordinary shares is scheduled for April 28, 2025, further solidifying PayPay's position.

Industry Overview in Japan

The banking sector in Japan is known for its stringent regulatory framework and high levels of competition. Traditional banks coexist with a growing landscape of digital banking solutions, driven by increasing deman