Informed sources reported that mobile phone company SoftBank and smartphone payment services company PayPay are studying an investment of several billion yen in major retail company Seven & i Holdings.

The two companies, both subsidiaries of the SoftBank Group, plan to expand their points reward system (a loyalty program where customers earn points for purchases or activities and redeem them for rewards) through a potential capital alliance with Seven & i, which owns Seven-Eleven Japan, the largest operator of convenience store chains in Japan.

The two companies will discuss an investment plan that may include allocating new shares to a third party, according to German news agency dpa.

SoftBank is working to expand its points system through a partnership with Sumitomo Mitsui Financial Group, allowing users to exchange PayPay points for V Points belonging to the banking group.

Meanwhile, Seven-Eleven Japan has been unable to keep up with its competitors, Lawson and FamilyMart, in payment services and reward points, and appears to hope to improve customer services by strengthening its ties with SoftBank and PayPay.

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