NTT DoCoMo to enter credit card business in Japan

TOKYO - Japan's top wireless service provider NTT DoCoMo Inc. said Wednesday it is entering the credit card business by buying a 34 percent stake in Sumitomo Mitsui Card for 98 billion yen (925 million dollars).
Sumitomo Mitsui Card, the second-largest credit card company in Japan, is an arm of Sumitomo Mitsui Financial Group Inc. (SMFG), the third largest of the country's big four banking groups.
DoCoMo will buy the stake as part of a strategic business alliance between the mobile phone giant and the banking group involving the launch of a new service designed to turn cellphones into "mobile-wallet handsets".
DoCoMo subscribers with cellphones equipped with the new FeliCa chip will be able to use the phones to make electronic payments.

04/27/2005 10:22 GMT