PayPal acquires Japan's Paidy for $2.7 billion

According to Japan's Nikkei news report, US payment company PayPal announced on Wednesday that it will acquire Japan's buy now, pay later (BNPL) parent company Paidy for approximately 300 billion yen (US$2.7 billion).

PayPal said it expects to complete the acquisition in the fourth quarter of 2021, subject to regulatory approval. After the acquisition, the Japan-based company will continue to operate its existing business and maintain its brand, while leaders Riku Sugie, president and CEO of Paidy, and Russell Cummer, founder and executive chairman, will retain their positions.

According to data, Japan is the world's third largest e-commerce market. PayPal's acquisition of Paidy, the parent company of Japan's "buy now, pay later" (BNPL) platform, is a major move to gain more market share in Japan, with PayPal trying to take the lead in providing deferred payment services and even occupy the scope of credit card use.

It is understood that Paidy basically provides a two-way payment service, acting as a middleman between Japanese consumers and merchants. The system obtains consumer consumption records, determines the consumer's creditworthiness, and then guarantees these transactions within seconds, guaranteeing payment to merchants. Consumers then pay Paidy for these goods in a deferred manner.

Currently, Paidy's platform mainly provides a monthly payment installment service called "3-Pay", where shoppers make monthly payments in the form of a consolidated bill at convenience stores or through bank transfers after shopping online. Peter Kenevan, vice president and head of PayPal Japan, said: "Paidy was the first to tailor a buy now, pay later solution for the Japanese market and quickly grew into a leader in Japan's deferred payment industry, providing consumers and merchants with a large-scale payment platform."

Russell Cummer, founder and executive chairman of Paidy , said after the acquisition was signed: "Japan has provided a vibrant environment for our company's growth to date, and I am honored that our team's hard work and potential have been recognized by a global leader. Working together with PayPal, we will be able to further achieve our mission to make shopping less hassle-free."

PayPal

Acquisition

Paidy