PayPal to Acquire Paidy for Furthering Japanese Expansion

Paypal, the global digital payment giant based in the US announced on Tuesday that it has agreed to acquire Paidy, Japan's leading buy-now-pay-later (BNPL) service provider, for  approximately US$2.7 billion, principally in cash, to strengthen its footprints in the country.

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's payment services enable 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.

"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, 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."

Following the transaction, Paidy will continue to operate its existing business, maintain its brand and support a wide variety of consumer wallets and marketplaces, according to the official press release. And the deal is expected to complete in the Q4 2021, subject to customary closing conditions, including the receipt of regulatory approvals.