Retailer Rakuten beats Japanese lenders at digital banking game

Rakuten Group Inc. is emerging as the first real digital contender to Japan's traditional lenders, using its Amazon.com New digital bank accounts with the internet conglomerate better known for its online shopping services expanded by 20% last year and recently topped 10 million, the most among the country's online lenders. Deposits grew by about 50% over the same period to more than ¥5 trillion, putting it on par with Japan's mid-sized regional banks. Rakuten allows its more than 100 million members to collect loyalty points by using a swath of services including its bank, which can then be spent like money through its array of businesses from its travel agency to its movie and TV show app. Part of last month's deal to collaborate with Japan Post Holdings Co. on cashless payments and insurance also saw investment from Tencent Holdings Ltd., the Chinese technology giant that's helped revolutionize China's payments market through its WeChat Pay.