IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

PayPal to acquire Japanese firm Paidy for $2.7 billion

Following Square's acquisition of AfterPay, the BNPL market is garnering interest from industry heavyweights

PayPal is set to acquire Paidy, a Japanese 'buy now, pay later' (BNPL) company for ¥300 billion (approximately US$2.7 billion). 

PayPal said that the acquisition will help to expand its capabilities, distribution, and relevance in the domestic payments market in Japan and complement its existing cross-border e-commerce business in the country.

"Paidy pioneered buy now, pay later solutions tailored to the Japanese market and quickly grew to become the leading service, developing a sizeable 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."

Paidy allows Japanese shoppers to make purchases online and then pay for them each month in a consolidated bill at a convenience store or through a bank transfer. The company said it uses proprietary technology to score creditworthiness, underwrite transactions, and guarantee payment to merchants. It also helps consumers “feel comfortable and safe” while shopping online and drives increased conversion rates, average order values and repeat purchases for merchants.

The company has over six million registered users and has integrations with PayPal and other digital and QR wallets through Paidy Link.

Related Resource

DevOps: A view from the enterprise

What's driving DevOps, the impact of value stream management, and more

High-rise buildings in the background of title card - whitepaper from ServiceNowFree download

"Paidy is just at the beginning of our journey and joining PayPal will accelerate our plans to expand beyond e-commerce 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."

At the beginning of August, Jack Dorsey’s financial services company Square was set to acquire Afterpay for around $29 billion, breaking the record for a completed Australian buyout. Afterpay is another BNPL platform that lends shoppers, who are exempt from credit checks, money they can pay off later, interest-free. Square planned to integrate Afterpay into its existing Seller and Cash App business units and allow “even the smallest of merchants” to offer BNPL at checkout.

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Skills shortages expected to hit over 90% of Australian and New Zealand businesses
Careers & training

Skills shortages expected to hit over 90% of Australian and New Zealand businesses

28 Jun 2022
Why India wants to become a chipmaking powerhouse
components

Why India wants to become a chipmaking powerhouse

28 Jun 2022
Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones
Mobile Phones

Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones

23 Jun 2022
Toshiba eyes $22bn buyout offer in bid to go private
Business strategy

Toshiba eyes $22bn buyout offer in bid to go private

23 Jun 2022

Most Popular

LockBit 2.0 ransomware disguised as PDFs distributed in email attacks
Security

LockBit 2.0 ransomware disguised as PDFs distributed in email attacks

27 Jun 2022
The UK's best cities for tech workers in 2022
Business strategy

The UK's best cities for tech workers in 2022

24 Jun 2022
Carnival hit with $5 million fine over cyber security violations
cyber security

Carnival hit with $5 million fine over cyber security violations

27 Jun 2022