SoftBank and PayPay in Talks to Invest $1.85 Billion in 7-Eleven Parent Seven & i Holdings

The investment, equivalent to about $1.85 billion, would give the two Japanese firms a minority stake in Seven & i, the operator of 7-Eleven convenience stores worldwide. SoftBank and PayPay aim to combine their technology and payment platforms with Seven & i's retail network to fend off competition from global rivals such as Amazon and Alibaba.

Under the proposal, SoftBank would provide enterprise AI systems to automate store operations, including inventory management and customer service. PayPay, Japan's largest mobile payments service with over 60 million users, would integrate its payment data with Seven & i's customer loyalty databases to offer personalized promotions and streamline checkout.

The talks come as Seven & i faces pressure from activist investors and a hostile takeover bid from Canada's Alimentation Couche-Tard. The company has been exploring strategic partnerships to strengthen its digital capabilities and defend its market position. A deal with SoftBank and PayPay would mark one of the largest technology investments in Japan's retail sector.

Sources familiar with the discussions said the two companies are in advanced negotiations, though no final agreement has been reached. The investment would be structured as a capital infusion into Seven & i, with SoftBank and PayPay taking a combined stake of around 5%. The companies declined to comment on the reports.

If completed, the partnership would give Seven & i access to SoftBank's AI expertise and PayPay's massive user base, potentially reshaping how convenience stores operate in Japan and abroad. The move also signals SoftBank's broader push into retail technology as it seeks to expand beyond its core telecom and investment businesses.