Japan’s second-largest mobile operator, KDDI, has launched its 24-hour online bank in partnership with Bank of Tokyo-Mitsubishi UFJ (BTMU). The 50-50 venture, dubbed ‘Jibun Bank,’ enables subscribers of KDDI’s ‘au’ mobile phone service to pay for goods and services they purchase with their mobile handsets. Money transfers between au service subscribers will require a sender to input only the receiver’s phone number and amount of money via his or her handset. To deposit or withdraw cash, customers use ATMs set up at BTMU, Seven Bank and Japan Post Bank outlets. The bank also plans to start offering automatic utility payment services by the end of March 2009. The service began accepting applications for account openings yesterday online or via BTMU branches and some KDDI stores.

Previous reports suggest the partners expect to have 2.4 million accounts and deposits representing a total of ¥1 trillion (US$9.4 billion) in the fiscal year starting April 2010. The service is expected to be open to mobile users of KDDI’s rivals, NTT DoCoMo and Softbank. The service is the fifth online bank to open in Japan after Japan Net Bank, Sony Bank, eBank and SBI Sumishin Net Bank, but the first bank specialising in offering banking services via mobile. Mobile market-leader NTT DoCoMo has financial arms, but has yet to offer a full-fledged banking service.