Japanese e-commerce giant Rakuten Inc is set to start issuing credit cards in Taiwan through a subsidiary, after the Financial Supervisory Commission (FSC) approved its plan to distribute own-brand cards locally.
The move is part of Rakuten’s overall strategy to achieve its ambitious annual growth target for its Taiwanese business.
The commission on Tuesday announced that it has granted Rakuten Card Co, a credit card subsidiary of the Japanese online retailer, permission to set up Rakuten Card Taiwan Inc (台灣樂天信用卡) with NT$300 million (US$9.93 million) in capital.
The new venture would be the nation’s fourth foreign-funded credit card-issuer, joining American Express International (Taiwan) Inc (台灣美國運通), Diners Club International (Taiwan) Co (台灣大來) and AEON Credit Card (Taiwan) Co (台灣永旺), the commission said in a statement.
Prior to the announcement, Grace Lo (羅雅薰), head of business at Taiwan Rakuten Ichiba Inc (台灣樂天市場), said at a press briefing on Tuesday that the credit card issuance is part of Rakuten’s plans to increase the portion of its revenue generated in Taiwan by more than 60 percent this year.
The company’s credit cards are to incorporate Rakuten Super Points, which can be earned with every NT$100 spent on Rakuten items and can be redeemed as payment for new purchases, Lo said.
Taiwan was the first overseas market Rakuten entered and since establishing its presence in the nation in 2008, the online retailer has expanded into 27 countries, including Singapore, Indonesia, Thailand and Malaysia.
Rakuten expects its Taiwan revenue to grow by more than 60 percent this year, a target it calls aggressive, but achievable through its a revamped business strategy, Lo said at the press conference.
The Japanese company also announced that it is to team up with Google Inc to give small and medium-sized Taiwanese enterprises easier access to the US firm’s advertising tools.
Under the partnership, Google will provide its AdWords keyword tools to boost Web site traffic and sales for the more than 2,800 Taiwanese retailers on Rakuten.com, while the Japanese firm will provide its e-commerce consulting services to those firms interested in using Google’s keyword tools.
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