Wed 08 September 2021:
PayPal, the online payment giant, has agreed to buy Paidy, an online Japanese credit specialist, for $2.7 billion, according to a statement released Tuesday.
The procurement is a new sign of the “buy now, pay later” sector’s growth.
Paidy, which was founded in Tokyo in 2008, allows online retailers to accept credit and installment payments from their clients.
Goldman Sachs and PayPal Ventures, the private equity arm of PayPal, have already invested roughly $400 million in the startup, which currently has 6 million customers.
According to a statement posted Tuesday, the latter put up 300 billion yen ($2.7 billion) for the takeover, “mostly in cash.”
The two companies intend to complete the merger in the fourth quarter of 2021, subject to the necessary regulatory approvals.
Following the takeover, Paidy will retain its brand and continue to operate under its name.
In April, the two businesses announced a partnership that would allow Paidy users in Japan to make credit purchases from any e-merchant using PayPal as a payment service anywhere in the globe.
The agreement announced on Tuesday reflects the growing popularity of “buy now, pay later” businesses.
Amazon launched a deal with Affirm Holdings at the end of August, allowing customers to spread out payments on purchases above $50.
In Japan, where PayPal has been functioning since 2010, the company claims to have more than 4.3 million active accounts.
(Input with Agency)
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