On July 24, 2025, 21st FinTech, the fintech subsidiary of Taiwanese e-commerce giant PChome, announced that it will invest ¥9.2 billion JPY to acquire a 65% stake in the parent company of Japanese payment service provider Payment for.
Purpose of M&A
Background of the Acquiring Company
PChome (TWSE: 8044) is a leading e-commerce group in Taiwan, operating platforms such as PChome 24h Shopping and Ruten Auction. Its fintech subsidiary, 21st FinTech, focuses on digital financial services and currently serves over 3 million users and 1 million merchants across Taiwan, Japan, and Southeast Asia.
21st FinTech operates under its own brand, TapPay, providing third-party payment and payment gateway services. It has launched innovative solutions including Buy Now Pay Later (BNPL) options. Recently, the company partnered with ASUS to offer smartphone subscription installment services, further demonstrating its commitment to business expansion and fintech innovation.
Background of the Acquired Company
Payment for (formerly Metaps Payment), established in 1999, is one of Japan's top 10 electronic payment service providers. In 2024, its total payment volume (TPV) exceeded ¥300 billion, with annual revenue reaching approximately ¥2.7 billion, serving more than 10,000 merchants. Its product portfolio includes subscription management tool “Kaihipay,” ticketing platform “Ticket Pay,” and real-time salary payment service “CRIA.” These offerings span payment solutions, modular services, and credit-related products, all fully compliant with international security standards (PCI DSS). With its rich experience and local network, Payment for is a key player in Japan's digital payment infrastructure.
M&A Objectives and Expected Outcomes
The acquisition aims to deepen market penetration in Japan and expand coverage across the Asia-Pacific region. According to the CEO of 21st FinTech, this transaction signifies a strategic reinforcement of their presence in Japan and an increase in market share across the broader Asia-Pacific payment industry.
With Japan’s government actively promoting a cashless economy (currently at a non-cash transaction rate of around 42.8%), the market holds significant growth potential. By acquiring a sizable local payment provider, 21st FinTech gains rapid access to this key market. Both companies will establish a strategic partnership, leveraging 21st FinTech’s expertise in AI-based risk control, installment payments, and e-commerce payment solutions, alongside Payment for’s products and customer base in Japan, to jointly expand cross-border payment services.
Through resource integration, the partnership is expected to enhance capabilities in merchant acquisition, fraud prevention, and regulatory compliance. The two companies also plan to co-develop cross-border payment infrastructure that meets international standards such as PCI DSS, AML/KYC, and ISO 20022, thereby strengthening their competitiveness in Taiwan, Japan, and Southeast Asia.
By acquiring Payment for and integrating its local resources, PChome’s 21st FinTech will further bolster its cross-border payment network and accelerate its expansion into global markets.
Acquisition Terms
Purchase Price
21st FinTech will acquire preferred shares issued by Japan’s MPI Inc. for ¥9.2 billion JPY, corresponding to a 65% stake in MPI Inc. (the parent company of Payment for, which wholly owns it) on a post-dilution basis.
Acquisition Method and Conditions
This transaction will primarily be funded through cash investment. The board of 21st FinTech also approved the issuance of private, unsecured convertible bonds to raise funds. The convertible bond offering will have an upper limit of ¥3.6 billion JPY, a 3-year term, and an annual interest rate of 2.5% (interest rolled into the principal). The investment target is the preferred shares issued by MPI Inc. In other words, 21st FinTech is not using equity swaps but will use proceeds from the convertible bonds to subscribe to new shares of MPI Inc. The conversion price and conditions will be determined based on the agreement and valuation at the time of the transaction. Final issuance details will be announced pending approval from the chairman.
Schedule
Board Approval: On July 24, 2025, the board of directors at 21st FinTech approved and announced the investment plan.
Transaction Completion: The transaction is expected to close by the end of 2025, pending approval from relevant Japanese regulatory authorities.
