PayPal Holdings, Inc. has agreed to acquire Japan-based buy now, pay later (BNPL) solutions provider Paidy for approximately $2.7 billion in cash. The acquisition comes as an effort to expand PayPal’s current capabilities, distribution, and relevance in Japan, the third-largest eCommerce market globally.
“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,” said Peter Kenevan, vice president and head of Japan at PayPal.
“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.”
Through the Paidy solution, the company can determine creditworthiness, underwrite transactions, and guarantee payment to merchants, enabling Japanese shoppers to shop online and then pay for their purchases each month via a consolidated bill at a convenience store or bank transfer.
Paidy’s 3-Pay monthly installment offering has more than six million registered users and its platform has established strategic relationships with leading global brands and online marketplaces. The company’s integration with PayPal and other digital and QR wallets has also helped it extends its reach to offline merchants.
“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,” said Riku Sugie, president and CEO of Paidy. “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.”
Following the acquisition, Paidy will continue to operate its existing business, according to PayPal. Additionally, Russell Cummer, founder and executive chairman of Paidy and Riku Sugie, the company’s current chief executive, will continue to lead the Paidy team.