PayPal and Softbank said Wednesday they will form a new joint venture to pursue online transactions
business in the country. The two companies said they will each invest ¥1
billion (US$12.5 million) in the newly established firm PayPal Japan which
will be a 50:50 joint venture. The companies also said they would launch PayPal
Here, a platform that uses small
card swiping attachments to allow smartphones to be used as mobile credit
card readers, in Japan.
For Softbank, which owns Yahoo Japan, a portal with dominant domestic auction and
shopping properties, the deal will provide access to an established global
e-payment platform. Yahoo Japan is largely independent from its troubled
cousin in the U.S.
At a press conference in Tokyo, Softbank CEO Masayoshi Son emphasized PayPal's experience in
online security and its massive user base, which includes over 110 million
active accounts. He said the PayPal Here service, which has typically been
presented as a solution for small businesses to easily offer credit card
services, could also work for larger companies in Japan.
"At large electronics stores and supermarkets, dozens line up at
cash registers, and customers have to wait. This allows workers at such
stores to settle purchases immediately with their smartphones," he said.
"So I think it will be adapted at larger stores, not just smaller
ones."
PayPal currently operates a fully-owned subsidiary in Japan. The
details of the transition to the
new joint venture are still being decided, a spokesman said.
|
VOCABULARY
1.
Venture -
a new business activity that involves taking risks
2.
Dominant
- more
powerful, important, or noticeable than other people or things
3.
Platform -
an opportunity to express your ideas to a large number of people
4.
Emphasized
- to say something in a strong way
5.
Transition
- when something changes from one form or state to another
QUESTIONS FOR DISCUSSION
1.
What do you think about this transition?
2.
Have you heard about Paypal service? Give the
disadvantages and advantages of using this service.
3.
What are other payment methods that you know
usually used to pay online?
4.
Do you have credit card? How often do you use
it?
5.
Which do you prefer when paying cash or card?
