Sumitomo Mitsui Financial Group Inc.'s credit card unit is zeroing in on investments in the U.S. financial-technology sector, as Japan plays catchup to other developed economies in electronic payments.
Over the past two years, Sumitomo Mitsui Card Co. met with more than 500 U.S. so-called fintech companies and narrowed the list of potential targets for acquisitions or tie-ups to around 10, President Ken Kubo said in an interview. The unit, which bought a $10 million stake in Jack Dorsey's mobile payments company Square Inc. in 2012, could spend up to ¥100 million ($830,000) on each deal, according to Kubo.
Kubo's effort coincides with a push by Prime Minister Shinzo Abe to accelerate a shift toward cashless transactions — a big change for a society that still prefers traditional payments. As the population ages and the number of foreign visitors rises, providing access to alternative payment options is key to turning around the Japanese economy, Kubo said.
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