PayPal has announced it will purchase the Japanese firm Paidy for $2.7 billion, as the US fintech giant seeks to expand into the sphere of buy-now-pay-later products that witnessed a great boom thanks to the Covid-19 pandemic.
The deal, which is expected to close in the fourth quarter of 2021, will broaden PayPal’s opportunities in Japan, one of the world’s most strategically important markets, according to Peter Kenevan, Vice President, head of Japan at PayPal.
“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,” the senior manager said.Japan is a home to the world’s third biggest e-commerce market.
However, around three-quarters of all purchases are still paid-for in cash. Launched in 2010, it allows Japanese consumers to purchase goods online and pay for them each month in person at local convenience stores. The company reportedly operates 4.3 million active accounts.
The announcement comes a month after American financial services Square said it would buy Australian fintech company Afterpay for $29 billion. The step was regarded as the beginning of a consolidation in the sector.
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