Blackstone acquires the majority stake in Japan’s Sony Bank

Japan-based Sony Bank recently offloaded a majority stake in its payments business, Sony Payment Services, to private equity funds managed by a company known as Blackstone.

According to the details of the deal, Sony Bank will be able to roll over a portion of its equity, and it gets to continue to support the growth of its payments business, but only as a minority investor.

What is Sony Payment Services?

Sony, a known consumer electronics giant in Japan, launched its own payment service business nearly 30 years ago, back in 1995. Six years later, it also launched its banking business, which went live in 2001.

Sony Payments Services (SPSV) then emerged as a standalone firm in 2006. Since then, the company has developed into one of the largest and most popular payment service providers in the country. This does not only come from Sony’s popularity, but also due to SPVS’  high speeds, secure infrastructure, and other benefits for customers and businesses, which allow them to quickly, easily, and safely process online payments.

Commenting on the new development, Sony Payment Services’ CEO and president, Hidehiko Nakamura, said that SPSV has solidified a healthy market position, and it earned the trust of its customers, as a high-quality payment service provider. “We believe this partnership with Blackstone will boost SPSV’s capabilities through investments in IT and talent to help accelerate its growth journey, particularly at an exciting time of growth for the electronic payment industry in Japan.”

Blackstone’s first step into Japan’s fintech sector

The deal is also critical for Blackstone, as it represents the company’s first investment in the fintech sector of Japan. The firm’s head of private equity in Japan, Atsuhiko Sakamoto, commented on the move, stating that digitization of the economy is a key trend on a global level, and that includes Japan as well.

With that said, SPSV is exceptionally positioned to benefit Blackstone with its sophisticated technology, but also its robust customer base. Blackstone’s head of private equity also noted that the firm is committed to bringing its operational and tech expertise and scale in order to support SPSV’s further growth.

Blackstone claims to be the world’s largest alternative asset management, with $1 trillion in assets under management. It serves both institutional and individual investors by building strong businesses that deliver lasting value. The company says that it manages 12,500 real estate assets, as well as more than 230 portfolio companies, which allows it to invest in dynamic sectors positioned for long-term growth.