TOKYO (Reuters) – Japan’s Rakuten Group said on Thursday it would consolidate its payments and points-based programs business into its credit card division, a move that could allow the struggling e-commerce giant to IPO its cards business.
Despite strong revenue generated from its e-commerce offerings, Rakuten has been losing money for nearly 12 consecutive quarters, due to the costly development of its mobile phone business, which has failed to take hold in the world. Japan.
The group has decided to IPO some of its divisions, including its online bank Rakuten Bank, to generate cash.
Rakuten said on Thursday it plans to consolidate its payment and points-based programs businesses and integrate them into Rakuten Card, its credit card and lending division.
Rakuten Card will become the “driving force” of its integrated payment business and can form strategic partnerships with other companies and “raise its own capital if necessary”, the group said in a statement.
Rakuten is due to release its second-quarter results on Thursday. Analysts expect the group to report an operating loss of 51.2 billion yen (322 million euros).
(Report Anton Bridge; Camille Raynaud, edited by Kate Entringer)
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