Seven & i, PayPay set for ID integration to build 100 million-plus bloc

2026-07-23

Investment and ID integration plans

PayPay and Seven & i Holdings are in final talks to integrate customer data, which would take the number of IDs to more than 100 million and create one of Japan's largest points-based consumer ecosystems.

With the spread of artificial intelligence, the amount of customer data has become a key factor in retail competitiveness. Combining the two companies' data would allow them to analyze consumer purchasing trends more precisely and improve shopping convenience.

PayPay and SoftBank, the telecommunications unit under SBG, are in final talks to invest in Seven & i. SoftBank and PayPay are each considering investments of around 100 billion yen, while Sumitomo Mitsui Card, under Sumitomo Mitsui Financial Group, is also set to invest. The companies plan to announce the investment and alliance measures as early as the end of July.

Membership base to top 100 million

Based on the investment, the companies will discuss integrating PayPay and Seven & i customer IDs. Details such as the timing of the integration will be worked out later. PayPay has 74 million registered users in Japan, while Seven & i operates the group-wide membership service 7iD, which has 39 million registrants.

A simple total of the two companies' members would top 100 million, putting their membership base on par with Rakuten Group and NTT Docomo. They are also looking at linking with V Point, the common rewards program run by Sumitomo Mitsui Financial Group, the parent of Sumitomo Mitsui Card, which is expected to invest in Seven & i alongside PayPay and SoftBank.

Promotions and payments to be strengthened

If cooperation between PayPay and Seven & i advances, it will become easier to roll out campaigns that make it easier for customers to earn PayPay points and other rewards based on spending at Seven & i stores. It will also be easier to launch promotions tailored to consumer preferences, and for Seven & i this would help strengthen its relatively weak payments business.

Seven Mile points earned through 7iD can already be exchanged for PayPay points or V Point. Even so, PayPay and others are strengthening points linkages because they see value in partnering with Seven & i, which has about 22,000 stores nationwide, to retain consumers and increase payment opportunities for PayPay and Sumitomo Mitsui Card. PayPay and Sumitomo Mitsui's services are centered on finance and payments, leaving them with relatively few touchpoints with retailers. They also aim to use Seven & i's store network to expand non-financial services.

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