Rakuten's Bold Mizuho Alliance: Fueling Growth in Mobile and FinTech

Rakuten Group (TSE:4755), the Japanese e-commerce giant, is demonstrating its commitment to growth and innovation in the mobile and fintech sectors. The company's strategic alliance with Mizuho Financial Group (MFG) and its mobile subscriber surge are set to drive Rakuten's market position and customer base.

Rakuten's alliance with MFG, announced on November 13, 2024, is a significant move that combines Rakuten's digital expertise with MFG's extensive banking network. The collaboration has already resulted in the launch of the Mizuho Rakuten Card, a co-branded credit card that offers customers a seamless and rewarding shopping experience. With 1% Rakuten Points for purchases and 3% on Rakuten Ichiba, along with exclusive Mizuho benefits like free ATM withdrawals and money transfers, the card is set to attract new customers and enhance Rakuten Card's market position.



Rakuten's mobile carrier service has also seen remarkable growth, with the number of subscribers surpassing 7 million as of June 16, 2024. The company's mission to democratize the mobile industry is evident in its affordable and simple service plans, such as the Rakuten SAIKYO Plan. The plan's unlimited high-speed data usage, both within the Rakuten network area and through domestic roaming partners, has proven appealing to customers. Additionally, initiatives like the Saikyo Kids Program, which rewards children with Rakuten Points for limited data usage, have broadened Rakuten Mobile's appeal.



The alliance with MFG and the mobile subscriber surge align perfectly with Rakuten's broader ecosystem strategy. By synergizing services like Rakuten Ichiba, Rakuten Securities, and Rakuten Mobile, Rakuten Group creates a more comprehensive and integrated ecosystem. This approach enhances Rakuten's competitive position and offers investors a compelling growth opportunity.

Rakuten's alliance with MFG and its mobile subscriber surge reflect the company's commitment to growth and innovation. By combining its digital expertise with MFG's banking network and offering affordable mobile services, Rakuten is poised to capture a larger market share and attract more customers. As an investor, Rakuten's strategic moves in the mobile and fintech sectors demonstrate its potential for consistent growth and steady performance, making it an attractive 'boring but lucrative' investment.