US-based online payments giant PayPal announced on Tuesday that it has agreed to acquire Japanese buy now, pay later (BNPL) provider Paidy in a $2.7 billion (¥300bn) deal which will be paid mostly in cash.
The acquisition of Paidy will enable PayPal to expand its online payment services in Japan which is the third largest e-commerce market worldwide.
Founded in 2008 by Lee Smith and Russell Cummer, Paidy is now Japan’s leading buy now, pay later solutions provider with over 6 million registered users.
The Japanese unicorn allows users to shop online and pay for them each month at a convenience shop or via bank transfer.
“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, PayPal’s vice president and head of Japan. “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.“
PayPal said that Paidy ‘’will continue to operate its existing business, maintain its brand and support a wide variety of consumer wallets and marketplaces.’’
Paidy’s executive chairman Cummer and president & CEO Riku Sugie will continue their roles following the acquisition, PayPal said.
“There is no better home for Paidy to continue to grow and innovate than PayPal, which has been removing friction from online shopping for more than 20 years,” said Cummer. “Japan has been a vibrant environment for our growth to date and we’re honored to have our team’s hard work and potential recognized by a global leader. Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping.”