Paypal announced its plans to acquire the Japanese BNPL player Paidy for JPY 300 billion (approximately USD 2.7 billion), which is reported to be a majority cash deal. The acquisition is expected to close in Q4 2021. Following the acquisition, Paidy will maintain its brand and operate under the leadership of Russell Cummer (Founder/ Executive Chairman, Paidy) and Riku Sugie (President/CEO, Paidy).

Paidy is a Japanese BNPL solution provider launched in 2014 that initially offered its payment option at checkout, allowing users to settle payments with a consolidated monthly bill. In October 2020, Paidy announced “Paidy 3-Pay,” a financing option enabling customers to split transactions into three equal payments with no interest or account set-up fees. Paidy has raised a total of around USD 400 million to date and currently counts more than 6 million registered users. Paidy also offers additional solutions such as Paidy Anywhere (registering Paidy as a Visa card) and Paidy Plus (pre-approved limits for financing). The company uses proprietary algorithms in its credit underwriting decisions.

Since Japan is considered to be a hotspot for growth in the BNPL space, given its consumer affinity towards e-commerce, the acquisition strengthens PayPal’s footing in the BNPL space and expands its operations in Japan.