MUFG Bank to Launch Smartphone Payment Service

Economy

Tokyo, Dec. 4 (Jiji Press)--MUFG Bank will set up a joint company with human resources services provider Recruit Holdings Co. <6098> to launch a smartphone-based cashless payment service, it was learned Wednesday.

The core banking arm of Mitsubishi UFJ Financial Group Inc. <8306> will seek to utilize Recruit's client base of eateries, hotels and beauty salons to amass participating stores and users for the service, in a market currently dominated by technology companies.

The two companies concluded a contract in October to give Recruit a 51 pct stake in the new joint company, with the remaining 49 pct held by MUFG Bank. They hope to launch the payment service in the first half of fiscal 2020, according to informed sources.

The service will use quick response, or QR, codes for transactions. Users can put money from their bank accounts on a smartphone app.

Users will also be able to send money to other individual users.

[Copyright The Jiji Press, Ltd.]

Jiji Press