SoftBank Corp., its mobile payments affiliate PayPay Corp., and Sumitomo Mitsui Financial Group are investing up to 300 billion yen, roughly $1.9 billion, into Seven & i Holdings, the parent company of the 7-Eleven convenience store chain. The deal centers on modernizing the retailer’s payment systems and loyalty points ecosystem across its vast network of stores.
The investment will come through a new share issuance by Seven & i Holdings, with the parties targeting a signing this summer. SMFG is evaluating participation through its credit card unit, adding a traditional banking layer to what is shaping up as one of the largest retail-fintech convergence deals in Japan this year.
Why a convenience store deal matters beyond retail
PayPay is Japan’s dominant mobile payments app. It processes an enormous volume of everyday transactions, from coffee purchases to utility bills, functioning as a de facto digital wallet for millions of Japanese consumers.
Japan’s regulatory environment makes this particularly relevant. The country has one of the world’s most developed legal frameworks for stablecoins and digital assets, having passed legislation in 2023 that allows banks and registered money transfer agents to issue stablecoins. SMFG, one of the investors in this deal, has been actively exploring blockchain-based financial products through its various subsidiaries.
