The startup's three top shareholders - Metaps, software company Miroku Jyoho Service Co Ltd and Nippon Gas Co - announced on Tuesday they would sell their combined 87% holding in Pring to Google.

Metaps said it is selling its 45% stake for 4.9 billion yen ($44 million).

Google has operated its smartphone payments business - now called Google Pay - in Japan since 2016. Tech companies such as SoftBank Group Corp and Rakuten Group Inc as well as financial firms are encouraging Japanese consumers to move away from a deep-seated preference for cash.

(Reporting by Tokyo Newsroom; Editing by Kim Coghill and Edwina Gibbs)