PayPal Closes $2.7B Acquisition Deal For Japan’s Paidy

PayPal is acquiring Japan’s buy now, pay later (BNPL) payments platform Paidy for ¥300 billion (about $2.7 billion) in a mostly-cash deal.

The tie-up builds on PayPal’s payments capabilities in Japan, which is the world’s third-biggest eCommerce market, according to a press release on Wednesday (Sept. 8).

Peter Kenevan, vice president and head of Japan at PayPal, said that Paidy has grown its two-sided platform for buyers and sellers into a “leading service” in Japan and “pioneered buy now, pay later solutions” for that market.

See also: Paidy CEO: Trust Is The Key To Advancing Japan’s Connected Economy

“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,” Kenevan said.

Paidy’s BNPL service extends the option of installment payments to buyers using its own methodology to determine creditworthiness. That same proprietary technology is used to underwrite the transaction and ensure payment to retailers. Offering a BNPL option has been shown to advance conversion rates, order values, and repeat business, according to the release.

You might also like: Japan’s BNPL Startup Paidy Teams With PayPal For Digital Wallet Link-Up

Founded in 2008, Paidy has more than 6 million registered users and has relationships with some of the biggest brands worldwide. The company has rolled out numerous products, including its 3-Pay monthly installment plan, and seamlessly integrates with PayPal and other QR wallets.

“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 Russell Cummer, founder and executive chairman of Paidy.

See also: Japan’s BNPL Platform Paidy Launches New Shopping App

“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,” Cummer said.