The acquisition is expected to allow the US-based fintech company to complement its existing cross-border e-commerce business in Japan
US-based fintech company PayPal Holdings has signed an agreement to acquire Japan’s Paidy, a provider of buy now, pay later solutions, for JPY300bn ($2.7bn).
The deal is expected to allow PayPal to expand its capabilities, distribution and relevance in the Japanese payments market.
In addition, it will enable the online payments processing company to complement its existing cross-border e-commerce business in the country.
Upon completion of the transaction, Paidy will continue to run its existing business and maintain its brand.
PayPal Japan head, vice president Peter Kenevan 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.”
To score creditworthiness, underwrite transactions and guarantee payment to merchants, Paidy uses proprietary technology.
The company claims that its ability to launch innovative products rapidly has helped to establish relationships with some of the leading global brands and online marketplaces.
Paidy has more than six million registered users.
Integrations with PayPal and other digital and QR wallets through Paidy Link is expected to enable Paidy to expand its reach to online and offline merchants beyond its platform.
Paidy president and CEO Riku Sugie said: “Paidy is just at the beginning of our journey and joining PayPal will accelerate our plans to expand beyond e-commerce and build unique services as the new shopping standard.
“PayPal was a founding partner for Paidy Link and we look forward to working together to create even more value. Thank you to our community of merchants and users who helped us get to this important milestone.”
The transaction is anticipated to be completed in the fourth quarter of this year, subject to customary closing conditions, including the receipt of regulatory approvals.
In March this year, PayPal announced the acquisition of Tel Aviv-based Curv to expand its initiatives to support cryptocurrencies and digital assets.