PayPay, the payments business within SoftBank Group, has agreed to buy a 70.2% holding in T&D Financial Life Insurance from T&D Holdings for Y134.3bn ($840m).
The transaction is scheduled for completion in October next year.
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Following completion, T&D Financial Life is expected to become a subsidiary of SBG and be treated as a specified subsidiary of SBG because its capital will amount to at least 10% of SBG’s capital.
PayPay said the purchase forms part of its move into broader financial services.
Through the addition of life insurance, PayPay intends to extend its financial services across different stages of customers’ lives, including daily payments, insurance and asset management.
Under a shareholders’ agreement planned with T&D Holdings and One Investment Management’s OneIM Indigo at the time the share acquisition is completed, T&D Holdings will retain 238,400 shares, or 14.9%, in T&D Financial Life.
The agreement stipulates a call option that PayPay can exercise from completion and a put option that T&D Holdings can exercise from three years after completion.
They plan to work together to make Taiyo Life insurance products available through the PayPay app, including product development and system design.
The companies will carry out studies and proof-of-concept trials related to Taiyo Life’s call centre operations, inbound call handling, customer service and internal efficiency.
These efforts are expected to include consideration of AI-related technologies, infrastructure and other tools provided by SoftBank and its group companies.
