Boku has extended its commercial agreement with Amazon, announcing that it has signed a new commercial agreement with Amazon Japan G.K. (“Amazon JP”). Under the agreement, Boku will supply Amazon JP with a digital wallet and other local payment methods. The Boku platform and its leading mobile payment platform will help power sales across the amazon.co.jp website.
In 2022, Boku revealed a three-year commercial agreement with Amazon that would see it supply similar services to Amazon. That deal required renewal every year, and this latest announcement seems to extend that with Amazon, further cementing the relationship. In 2022, Boku also revealed that Amazon owned 3.75% of Boku’s existing issued share capital.
The relationship with Amazon predates this as its IPO document revealed that some of the Boku Management team had previously worked for Amazon.
This agreement will see Boku gain revenue in proportion to the transaction value that is processed on the Amazon.co.jp website. It also revealed that the revenue may result in the vesting of warrants previously issued to Amazon.com Inc.
Stuart Neale, Chief Executive Officer of Boku, commented, “This new agreement with Amazon JP is a testament to Boku’s goal to provide innovative and secure mobile payment solutions to global merchants. We are excited to partner with Amazon JP and expand our presence in the Japanese market, which is one of the leaders in mobile wallet adoption.”
Enterprise Times: What does this mean?
This is an important deal for Baku. In 2023, Amazon Japan was leading the online marketplace within the Japanese e-commerce market. Its sales revenues in 2023 total around 27 billion US dollars (Source Blankspace) making it Amazon’s fourth highest revenue earning marketplace.
However, with the original deal set to expire in 2025, Boku will need to capture renewals for the other Amazon countries and the wider Amazon organisation. The key will be the relationships with the top three marketplaces, the United States, the UK and Germany. It should also seek to set up an agreement in India, another rapidly emerging market.
