PayPal will acquire Paidy, a payments and buy now, pay later provider in Japan, for approximately $2.7 billion.
The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, and complement its existing cross-border ecommerce business in the country.
Peter Kenevan, vice president and head of Japan at PayPal, says: “Combining Paidy’s brand, capabilities and talented team with PayPal’s expertise, resources and global scale will create a strong foundation to accelerate our momentum in this strategically important market.”
Paidy’s payment services allow Japanese shoppers to make purchases online, and then pay for them each month in a consolidated bill at a convenience store or via bank transfer.
The fintech uses proprietary technology to score creditworthiness, underwrite transactions and guarantee payment to merchants.
Paidy has demonstrated an ability to rapidly develop and successfully launch innovative products, including its Paidy 3-Pay monthly instalment offering, that has impressed PayPal.
As a result, the fintech has been able to drive strong engagement with its more than six million registered users and establish strategic relationships with brands and online marketplaces.
It also boasts integrations with PayPal and other digital and QR wallets through Paidy Link that expand its reach to online and offline merchants beyond its own platform.
Russell Cummer, founder and executive chairman of Paidy, believes there is “no better home for Paidy to continue to grow and innovate than PayPal”.
Cummer continues: “Japan has been a vibrant environment for our growth to date and we’re honoured to have our team’s hard work and potential recognised by a global leader. Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping.”
Riku Sugie, president and chief executive officer of Paidy, adds: “Paidy is just at the beginning of our journey and joining PayPal will accelerate our plans to expand beyond ecommerce and build unique services as the new shopping standard.”
Following the acquisition, Paidy will continue to operate its existing business, maintain its brand and support a wide variety of consumer wallets and marketplaces.
Cummer and Sugie will also continue to lead the Paidy team, after closing in Q4 2021.