Ericsson eyes Japan mobile growth with bank deal
TOKYO, Jan 31 (Reuters) - Swedish telecoms equipment maker
Ericsson (LMEb.ST) said on Wednesday it would tie up with a new
online banking venture in Japan, hoping to tap into rapid growth
in mobile online commerce.
The Japanese unit of Ericsson said in a statement that it had
made a small, undisclosed investment in an online banking venture
named eBank being set up in April by trading house Itochu Corp
(8001.T).
It said it would also supply its settlement system which
allows users of mobile phones and other Internet devices to make
payments online.
'Our capital commitment is small and we are unlikely to
increase our equity involvement,' said Kyoko Taka, a spokeswoman
for the unit, adding the main aim was to spread the use of
Ericsson's settlement system in the promising Japanese market.
Ericsson, which last week said it would stop producing its
own mobile phones and concentrate on research and development,
said it hopes to make its service the industry standard in Japan.
The firm is already a leading supplier of communications
infrastructure for mobile phones in Japan.
The system will also be cheaper for service providers, with
fees coming to only about two percent of the value of goods or
services, compared with five percent when using credit cards.
eBank will specialise in settling payments for low-priced
goods and services and aims to become a leader in Japan's
fledgling e-commerce market.
Investors showed limited reaction to the news, with Itochu
shares down three yen at 508 yen as of 0508 GMT. |
