Japan's KDDI buys stake in store chain Lawson as part of payments tie-up (updated)

Lawson

16/12/2019 08:10

(Adds details of deal, background on Japan's cashless push)
    TOKYO, Dec 16 (Reuters) - Japanese telecom company KDDI Corp
 9433.T  is taking a 2.1% stake in convenience store chain
Lawson  2651.T  as part of a tie-up in smartphone payment
services, the companies said on Monday. 
    The partnership will combine KDDI's 5G technologies and
Lawson's network of stores, along with both companies' fledgling
payment and loyalty systems, they said. KDDI's investment would
be worth more than 13 billion yen ($118.8 million) based on
Lawson's last closing price.
    Ultra-low interest rates, a nationwide web of ATMs and
relatively low crime rates have made Japanese consumers late
compared to some other developed nations to embrace electronic
money and mobile payments. 
    But a consolidating banking sector and corporate drive for
automation are encouraging businesses to adopt more digital
options.
    The Japanese government is also promoting cashless payments
in a bid to bolster productivity amid a labour crunch, aiming to
double the ratio of cashless settlements to 40% by 2025 and to
80% eventually. 
 ($1 = 109.41 yen)

 (Reporting by Ritsuko Ando and Kevin Buckland; Editing by
Himani Sarkar and Muralikumar Anantharaman)
 ((Kevin.Buckland@thomsonreuters.com;))