Shares of Rakuten surged by 5% after a report suggested the Japanese e-commerce giant is considering listing its credit card unit in the US. The move would allow Rakuten to tap into the booming market for digital payments and potentially raise billions of dollars in funding.

The potential listing comes as Rakuten aims to expand its presence in the US market, where it already operates an e-commerce platform and offers various financial services. The company’s credit card unit has seen strong growth in recent years, with revenue increasing by 20% in the last fiscal year.

Rakuten’s decision to explore a US listing for its credit card unit reflects the increasing importance of digital payments in the global economy. With consumers shifting towards online shopping and contactless payments, companies like Rakuten are looking to capitalize on this trend by expanding their presence in the digital payments market.

Read more at Investing.com: Rakuten shares jump on report of possible US listing for credit card unit