The Ripple supported MoneyTap application will be integrated by Fukushima Bank as it has established a new partnership with SBI Holdings.
As part of the partnership, the regional credit-issuing Ripple-backed payment application will be integrated into MoneyTap.
MoneyTap will help Fukushima Bank to increase customer convenience while reducing operational costs
Unprofitable Japanese Banks
As reported by The Japan Times, SBI will become the largest shareholder after acquiring an 18 percent stake in the bank. Fukushima Bank has difficulty finding a way to profitability, but the final deal can make a difference.
Overall, 45 out of 105 regional banks in Japan are going through a profit-free period for the second consecutive year due to the country’s monetary policy. The Bank of Japan has been continuing quantitative relief to increase spending over the last six years, but it puts much pressure on banks that continue to struggle with earnings.
MoneyTap as a solution
The MoneyTap app was launched in March 2018 by the Bank of Japan Consortium. The application allows users to transfer from bank to bank with the help of phone numbers or QR codes.
As mentioned earlier, MoneyTap joined four other regional banks, including Awa and Kita-Nippon, in early September, bringing the total number of financial institutions using the application to 29.
Therefore, Money Tap continues to grow with additional partners after Resona, the fifth largest Japanese financial institution.