Shares of PayPal (PYPL) are falling after a report that Japanese conglomerate SoftBank (SFTBF) is considering the creation of a digital payments system.
SOFTBANK MULLS PAYMENTS SYSTEM: SoftBank is considering a plan to lead a bank-backed consortium to develop a digital payments system to compete with PayPal, Apple Pay (AAPL) and Alibaba’s (BABA) Alipay, The London Times reported over the weekend. SoftBank, which partnered with Saudi Arabia to establish its $100B Vision Fund and bought British chip designer Arm Holdings in 2016, may acquire a financial software business as part of the effort to create the digital payment infrastructure and challenge the push by tech giants to tighten their grip on the financial system, according to the report.
WHAT’S NOTABLE: Softbank is rumored to have been circling Temenos, a Swiss firm that provides software to many of the world’s top financial institutions, the Times said. Temenos last week denied that Softbank was preparing a GBP7.5B takeover offer.
PRICE ACTION: PayPal has dropped 1.1%, or 91c, of $84.56 in morning trading.
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