Eleven major firms and banks -- including Sony Corp., NTT DoCoMo Inc., Sakura Bank and Toyota Motor Corp. -- announced Monday that they will set up a joint venture next month to provide a prepaid electronic money service in an effort to realize a cashless society in Japan.
The new company, capitalized at 5 billion yen, will promote the Edy card -- a prepaid card for small transactions -- and sell terminals for installment at retailers and in consumers' personal computers.
Using a noncontact integrated circuit card developed by Sony, the Edy card will enable consumers to pay for goods simply by sliding the card against an in-store terminal. They can also transfer money from their bank account to the card via the terminals or personal computers.
Nationwide services are expected to begin in October, following experimental services that are due to start at some convenience stores and Web sites in March.
The Sony group will hold the largest stake of 47 percent -- 5 percent by Sony Corp. and 42 percent by Sony Finance International Inc., while NTT DoCoMo will own the second-largest stake at 15 percent.
Sakura Bank will hold 5 percent and its affiliate Sakura Information Systems Co. will take 6 percent.
Toyota Motor Corp., Denso Corp. and DDI Corp. will take 5 percent each, while Sanwa Bank, the Bank of Tokyo-Mitsubishi and Japan Research Institute will each take 4 percent.
The new firm is aiming for 30 million cardholders within five years, as well as 25,000 retail outlets, 30,000 cyber outlets, 1 million vending machines and 15 million individuals with their own computer-based terminals within the same time frame.