PayPal, one of the leading American digital payments companies, recently announced that the company has decided to acquire Paidy, a Japan-based financial solutions provider, in a deal worth ¥300 billion or nearly US$2.7 billion, principally in cash.
According to an official press release, the acquisition will enable PayPal to expand its capabilities and distribution in the Japanese market. Additionally, PayPal highlighted the potential of Japan’s e-commerce market in the latest announcement.
Paidy is famous for its buy now, pay later solutions in Japan. The company’s payment services allow the regional shoppers to make purchases online and then pay for them each month in a consolidated bill at a convenience store or through bank transfers.
Commenting on the acquisition announcement, Peter Kenevan, Vice President, Head of Japan at PayPal, said: “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. 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.”
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Since the start of 2021, PayPal has expanded its digital payments and crypto services substantially. The recent announcement from the US-based firm came nearly two weeks after the company announced the launch of its crypto services in the UK.
Japan is currently the world’s third-largest e-commerce market. The use of technology in the country’s payments industry has jumped significantly in the last two years.
“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. “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.”
According to PayPal, the $2.7 billion acquisition is expected to close in the fourth quarter of 2021.