Japanese e-commerce and internet giant Rakuten is forming a new payment subsidiary which will oversee its cryptocurrency business.
Rakuten recently announced a revision of its corporate structure with the introduction of four major divisions including mobile, fintech, and payment businesses.
“[We] have been preparing the Group Reorganization through a company split, to clarify accountability, improve management efficiencies and optimize allocation of resources, and thereby further grow and expand the Rakuten Ecosystem and maximize corporate value,” Rakuten stated in the press release.
Cryptocurrency is the Future
The company will rebrand its existing loyalty subsidiary, Spotlight Inc., in a new entity called Rakuten Payment. This wing of the company will also run a cryptocurrency exchange in the country.
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Rakuten Payment will work as an umbrella for two wings – the crypto exchange Everybody’s Bitcoin and a prepaid card service Rakuten Edy.
According to the press release, Rakuten Payment and other restructured platforms will go live on April 1.
“In order to achieve more integral promotion of the payments business operated by the group, as a result of the absorption-type split with the company as the split company, the company’s payments-related businesses (Rakuten Pay business for real store payments, Point Partner business, Edy business etc.) and shares of Rakuten Edy, Inc., with Rakuten Card Co., Ltd. as a split company, the shares of Everybody’s Bitcoin Inc. will transfer to Spotlight Inc., a wholly-owned subsidiary of the Company,” Rakuten added.
Last year, Rakuten acquired the local cryptocurrency exchange Everybody’s Bitcoin for 265 million yen ($2.4 million). The company then said that “the role of cryptocurrency-based payments in e-commerce, offline retail and in P2P payments will grow in the future.”