Rakuten Card Co.,Ltd. (E35230) Stock Price

Rakuten Card is a core company in the Rakuten Group's financial technology business. The company primarily issues the "Rakuten Card" credit card to individual customers through the internet and provides financial services including card shopping and cash advances. It also operates a wide range of payment services, delivering solutions tailored to customers' various payment needs.

The company's primary customers are individual consumers, with revenue generated mainly from merchant fees associated with credit card usage, cash advance interest, and annual fees. By leveraging partnerships with other Rakuten Group services, the company pursues a differentiation strategy that utilizes the group's ecosystem—such as offering higher point redemption rates for purchases on Rakuten Marketplace. This approach aims to increase customer usage frequency and maximize revenue.

The company currently operates two main business segments: the Credit Card Business and the Payment Business. In the Credit Card Business, Rakuten Card Inc. serves as the core entity and also operates services in Taiwan through a local subsidiary. In the Payment Business, Rakuten Payment Inc. handles mobile payments, while Rakuten Edy Inc. manages prepaid electronic money, together providing diverse payment methods.

Rakuten Card, a core company in the Rakuten Group's financial business, aims to maximize corporate and shareholder value under the fundamental principle of "empowering people and society through innovation." The company has established revenue and Non-GAAP operating profit as its primary management metrics, and measures growth through key performance indicators (KPIs) such as credit card shopping transaction volume and revolving balance in its card business, and the total number of available payment service locations in its payment business. Within the government's goal of achieving a 40% cashless payment ratio by 2025, the company is positioning itself as a leading player in this sector and developing strategies to contribute to market expansion.

The company's competitive advantage lies in the powerful synergies created with other Rakuten Group companies. Through collaboration with the Rakuten ecosystem, including Rakuten Ichiba, the company is working to enhance customer loyalty and improve various KPIs. In its credit card business, Rakuten Card serves as the core offering, with international expansion underway through a local subsidiary in Taiwan. In its payment business, the company addresses diverse customer needs by offering multiple payment methods, including mobile payments through Rakuten Pay and prepaid electronic money through Rakuten Edy.

In developing new markets, the company prioritizes promoting cross-use by leveraging the Rakuten Group's customer base to its fullest extent. The company is implementing efficient promotional activities to strengthen each business segment's foundation, and aims to expand the Rakuten Group's overall FinTech business by enhancing synergies across group companies more than ever before. The company also continues to invest in strengthening operational and system infrastructure, including expanding customer service center functions, to support sustained high growth.

In technological innovation, the company is actively pursuing new value creation through the convergence of artificial intelligence (AI) and voice recognition technology. Leveraging various advanced technologies held by the Rakuten Group, the company is advancing innovative service offerings that maximize the power of AI and big data. Simultaneously, the company continues to invest in foundational infrastructure, including proper management of personal information, strengthening compliance systems, and ensuring information system stability, while promoting initiatives toward the development of the digital economy and the realization of Society 5.0.