Z Financial Corporation

Z Financial Corporation (Zフィナンシャル株式会社) was a Japanese financial holding company under the SoftBank Group umbrella and a wholly owned subsidiary of LINE Yahoo Corporation. It was created to house the financial operations of the first-generation Yahoo Japan, most notably the internet bank PayPay Bank (formerly Japan Net Bank). Although structured as a financial holding company, Z Financial did not directly oversee all of the group's financial businesses: major units such as PayPay, PayPay Securities, and PayPay Card remained businesses of the parent LINE Yahoo and its affiliates rather than of Z Financial itself. The company originated as a spin-off preparation entity named Kioicho Financial Split Preparation Corporation (紀尾井町金融分割準備株式会社), established on May 15, 2019, ahead of Yahoo Japan's transition to a holding company structure. On October 1, 2019, it absorbed Yahoo Japan's financial division and was renamed Z Financial Corporation. In 2020 the group announced that its financial services would be unified under the PayPay brand, and in April 2021 its subsidiary Japan Net Bank changed its name to PayPay Bank. In October 2023, Z Financial acquired all shares of LINE Securities and LINE Credit from LINE Financial, expanding its portfolio. However, in April 2025 it transferred all of its PayPay Bank shares to PayPay, and on August 1, 2025, it was absorbed and dissolved into LINE Yahoo. Its subsidiaries included PayPay Asset Management, PayPay Insurance Services, LINE Securities, LINE Credit, and Braincell, a data analytics and digital marketing joint venture with Sumitomo Mitsui Financial Group.

Z Financial Corporation was established as part of a restructuring of Yahoo Japan (the first-generation company, now LINE Yahoo). On April 25, 2019, Yahoo Japan's board of directors resolved to transition to a holding company structure effective October 1, 2019, and to establish a preparatory split company for its financial division. Accordingly, Kioicho Financial Split Preparation Corporation (紀尾井町金融分割準備株式会社) was founded on May 15, 2019. On October 1, 2019, the company absorbed Yahoo Japan's financial division and changed its name from Kioicho Financial Split Preparation to Z Financial Corporation. It became a financial holding company under Z Holdings (later LINE Yahoo), with the internet bank Japan Net Bank as its principal subsidiary. On July 31, 2020, Z Holdings announced that the financial businesses under its umbrella (including those under Z Financial) would be unified under the "PayPay" brand. Reflecting this, on April 5, 2021, subsidiary Japan Net Bank changed its trade name to PayPay Bank. On October 1, 2023, Z Financial acquired all shares of LINE Securities and LINE Credit from LINE Financial, bringing those businesses under its wing. However, on April 11, 2025, Z Financial transferred all of its PayPay Bank shares to PayPay. Finally, on August 1, 2025, Z Financial was absorbed and merged into LINE Yahoo and dissolved. Throughout its existence, Z Financial's subsidiaries included PayPay Asset Management, PayPay Insurance Services, LINE Securities, LINE Credit, and Braincell (a data analytics and digital marketing company, a joint venture with Sumitomo Mitsui Financial Group, and a "banking business enhancement company" under the Banking Act).

• 2025

  Z Financial transfers all of its PayPay Bank shares to PayPay.

• 2025

  Z Financial is absorbed and merged into LINE Yahoo and dissolved.

• 2023

  Z Financial acquires all shares of LINE Securities and LINE Credit from LINE Financial.

• 2021

  Subsidiary Japan Net Bank changes its trade name to PayPay Bank.

• 2020

  Z Holdings announces unification of its financial businesses under the PayPay brand.

• 2019

  Yahoo Japan's board resolves to transition to a holding company structure and establish a financial division split preparation company.

• 2019

  Kioicho Financial Split Preparation Corporation is established as the financial division split preparation company.

• 2019

  The company absorbs Yahoo Japan's financial division and is renamed Z Financial Corporation.

A financial holding company consolidating the fintech and banking assets of the Yahoo Japan / LINE Yahoo ecosystem under the SoftBank Group, later unified under the PayPay brand.

• PayPay Bank

  Internet banking subsidiary, formerly Japan Net Bank.

• LINE Securities

  Securities business acquired from LINE Financial in 2023.

• LINE Credit

  Credit and lending business acquired from LINE Financial in 2023.

• PayPay Asset Management

  Asset management subsidiary.

• PayPay Insurance Services

  Insurance services subsidiary.

• Braincell

  Data analytics and digital marketing joint venture with Sumitomo Mitsui Financial Group.

1. 1Z Financial Corporation - Wikidatawikidata.org
2. 2Zフィナンシャル - Wikipedia (Japanese)ja.wikipedia.org