PayPal announces plans to buy Japanese fintech company Paidy

|

Valentina Vitali
Valentina Vitali
FXC Intelligence Research Analyst
Valentina is a Research Analyst at FXC Intelligence, the data sister company of FXcompared. Valentina is passionate about payments and fintech. Valentin enjoys analysing money transfer companies and… Read more
  • PayPal, one of the world’s best-known cross-border payments providers, has confirmed that it intends to purchase a Japanese financial technology company called Paidy.
  • Paidy is a ‘buy now, pay later’ firm, and its purchase price is understood to be well over US$2bn.
  • “Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping,” said a spokesperson for Paidy.

Global online money transfer provider PayPal has announced a plan to purchase a Japanese financial technology company.

The company will buy Paidy, a financial technology business that specialises in a branch of digital payments known as ‘buy now, pay later’.

It is believed that PayPal will pay 300 billion Japanese yen for the company, which is equivalent to around US$2.7bn.

Demand for the services offered by Paidy is believed to have risen in recent years thanks to the coronavirus pandemic.

This fuelled a rise in online shopping and led to a sharp increase in the number of people making purchases on a ‘pay later’ basis.

Paidy caters to this demand by allowing customers to pay off their bill in instalments in the months following the purchase, either through a bank transfer or via in-store payments.

In a statement, a senior figure at PayPal gave an overview of Paidy’s history in this sector of the market, identifying it as a “leading” service.

Peter Kenevan, who is the company’s vice president and head of Japan, explained that the platform it offers is “two-sided”, given its focus on both customers and sellers.

“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,” he said.

He added that both PayPal and Paidy could bring something unique to the table.

“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,” he explained.

Meanwhile, Paidy’s founder said that PayPal was the right home for the business going forward.

Russell Cummer, who also serves as its executive chairman, praised PayPal for its record to date.

“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,” he said.

He concluded that the two firms had a lot of potential together.

“Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping.”

To learn more about the operations of the international money transfer sector, why not simply head over to our reviews pages and get the latest on what’s happening in each individual company?


Most Read

Use Our Currency Comparison Tool

Results are ranked in order of the best overall deal, taking into account transfer times, rates, fees, and customer service.

Editor's Choice

FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended.  FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.