PayPal has agreed to acquire Paidy, a leading two-sided payments platform and provider of buy now, pay later (BNPL) solutions in Japan, for ¥300 billion or approximately $2.7 billion, principally in cash.
The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, the third largest e-commerce market in the world, complementing the company’s existing cross-border e-commerce business in the country.
“Paidy pioneered buy now, pay later solutions in 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, 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.”
Paidy uses proprietary technology to score creditworthiness, underwrite transactions and guarantee payment to merchants.
The company has strong engagement with its more than 6 million registered users and helped establish strategic relationships with leading global brands and online marketplaces. Its integrations with PayPal and other digital and QR wallets through Paidy Link expands it’s reach to online and offline merchants beyond its platform.