Face-recognition business puts SoftBank between China, U.S.

The JCV-SenseTime partnership highlights SoftBank’s difficult balancing act as Son tries to position his conglomerate as a neutral player even while tensions mount between two key markets, the U.S. and China

A SoftBank-owned company is thriving by offering face-recognition technology fuelled by a blacklisted Chinese firm to the likes of Mastercard and Visa, an opportunity for the Japanese conglomerate, fraught with geopolitical and privacy risks.

(Sign up to our Technology newsletter, Today’s Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

Japan Computer Vision Corp (JCV), owned by SoftBank Group Corp's wireless unit, has struck deals on payments in recent months, a potential breakthrough for SoftBank founder Masayoshi Son's dream of driving new business through partnership between his tech investments.

If JCV sustains its expansion, it could become a standout example of SoftBank creating synergies with portfolio companies - a key part of Son's sales pitch to the tech industry.

But the surge faces risks as the facial-scanning system it offers to U.S. heavyweights Mastercard Inc and Visa Inc uses technology from SenseTime Group, a Chinese firm blacklisted by the United States over human rights concerns.

The JCV-SenseTime partnership highlights SoftBank's difficult balancing act as Son tries to position his conglomerate as a neutral player even while tensions mount between two key markets, the United States and China.

The billionaire said last month SoftBank is taking a cautious approach towards China due to a regulatory crackdown there that has roiled its portfolio.