Global asset manager Blackstone said it has agreed to acquire a majority stake in Sony Payment Services from Sony Bank, a wholly-owned subsidiary of Japan’s Sony Group.

This marks Blackstone’s first investment in the financial technology sector in Japan, the firm said in a statement. Financial details of the transaction were not disclosed.

Sony Bank will roll over a certain portion of its equity and will continue to support the growth of Sony Payment as a minority investor, Blackstone added.

The investment is expected to help Sony Payment enhance its capabilities through investments in IT and talent, according to Hidehiko Nakamura, president and CEO of Sony Payment.

Sony Payment was established as Sony’s payment service business in 1995, and became a standalone company in 2006.

Steve Schwarzman, chairman, CEO and co-founder of Blackstone, said that the ties between his firm and Sony went way back to Blackstone’s founding nearly four decades ago when it was started out as a boutique M&A firm, and Sony was one of its earliest clients.

“Digitisation of the economy is a key trend around the world including Japan, and Sony Payment Services is exceptionally positioned to benefit with its sophisticated technology and robust customer base,” said Atsuhiko Sakamoto, head of private equity at Blackstone Japan.

Japan is the fourth largest electronic card payment market in the world with a market penetration of 9.1%. In addition, the country’s e-commerce market was worth 22.7 trillion yen, Blackstone said.

“With the accelerated shift towards cashless payments and increasing diversification in payment types, it’s more important than ever to adapt to new trends with greater speed,” commented Keiji Minami, president, CEO, and representative director of Sony Bank.

Blackstone’s global head of private equity, Joe Baratta, was quoted as saying last month that Japan and India will be the firm’s most active markets in Asia in 2024.

Its private equity investments in Japan include the acquisition of Alinamin Pharmaceutical (formerly Takeda Consumer Healthcare) and AYUMI Pharmaceutical.

In 2022, Blackstone closed its second Asia-focused private equity fund at $11 billion, which is among the biggest private equity funds dedicated to Asia investments.