NTT Docomo sold its global payment business to Bango for €4 million and inked a long-term deal to use the UK-based company’s platform for payment processing in Japan.

As part of the deal, Docomo Digital will migrate its carrier billing services for app stores and merchants to Bango’s platform.

In a statement, Bango executive chair Ray Anderson noted that after many years competing with Docomo Digital, “we know the business and the team well”, adding the acquisition is a key, strategic deal which solidifies its market leadership.

Bango said the deal will be funded using cash, with integration costs covered by operating activities and existing cash. The acquisition is expected to be earnings accretive in the first full year and achieve annual savings of $21 million in 2023.

NTT Docomo GM of the Wallet Service Department Tsutomu Tahara noted there was a major benefit for the digital payments industry in supporting a common platform technology.

Tahara explained Bango is “uniquely placed with market leading technology that will benefit our customers in Japan and our merchant partners worldwide”.

In the fiscal year ending 31 March 2022, Docomo Digital reported a loss before tax of €1.3 million.