Under the terms of the deal, both firms have agreed to invest equal amount in the joint venture on the tune of JPY1bn ($12.5m) each, which sums up to JPY2bn ($25m).
PayPal Japan will be administered by the board of directors, which comprises six directors, three from PayPal and SOFTBANK, each, said the firm.
Hiroaki Kitano, a senior vice president and director of SOFTBANK MOBILE, will serve as the CEO of the joint venture.
The new entity will enable Japanese consumers and businesses to expedite the transitions, through digital wallet for online, mobile and offline transactions.
Commenting on the formation of new establishment e-Bay CEO and president John Donahoe said that SOFTBANK partnership and launch of PayPal Here will make it easier for millions of merchants in Japan to grow their businesses and for consumers to easily pay anytime, anywhere.
PayPal president David Marcus said that the firm is pleased to support the growth of small businesses and empower anyone to be an entrepreneur with the launch of PayPal Here in Japan.
