PayPal announced that it has agreed to acquire Paidy, a Japanese buy now pay later solutions (BNPL), for ¥300 billion (approximately US$2.7 billion) and the transaction is expected to close in the fourth quarter of 2021.
The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, the third largest ecommerce market in the world, complementing the company’s existing cross-border ecommerce business in the country.
Paidy will continue to operate its existing business, maintain its brand and support a wide variety of consumer wallets and marketplaces.
Russell Cummer, Founder and Executive Chairman and Sugie as well as Riku Sugie, President and CEO will continue to lead the Paidy team.
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 company uses proprietary technology to score creditworthiness, underwrite transactions and guarantee payment to merchants.
Its integrations with PayPal and other digital and QR wallets through Paidy Link expands Paidy’s reach to online and offline merchants beyond its platform.
“Paidy pioneered buy now, pay later solutions tailored to the Japanese market and quickly grew to become the leading service, developing a sizable two-sided platform of consumers and merchants.
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.”
said Peter Kenevan, Vice President, Head of Japan at PayPal.
“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.
PayPal was a founding partner for Paidy Link and we look forward to working together to create even more value. Thank you to our community of merchants and users who helped us get to this important milestone.”
said Riku Sugie, President and CEO of Paidy.
