PayPal snaps up Japanese buy now, pay later firm Paidy

Date:
Wed, 08 Sep 2021 11:11:27 +0000

Description:
Acquisition will allow PayPal to boost its fortunes in burgeoning Japanese e-commerce sector.

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PayPal has announced it will acquire Japanese buy now, pay later company
Paidy for around $2.7 billion in a cash deal set to complete later in the year.

The move is designed to help the payments giant get a stronger foothold in
the Japanese e-commerce marketplace , while also allowing it to boost its range of cross-border payment options.

Along with boosting the fortunes of PayPal, the announcement looks set to
help intensify competition within Japans financial payments sector. PayPal is continuing to bulk out its online payments business, having registered over 400 million operating accounts as of June this year. The company says that around 40% of those are located outside the US. We've also featured the best website builder offerings Take a look at the best content marketing tools around today Check outthe best online marketing services as well

As demand for e-commerce products and services grows so does the need for businesses to accept payments in more flexible ways. PayPals suite of product options have allowed it to built up around 32 million member stores that can now accept payments via the PayPal infrastructure. That has resulted in
PayPal recording a total transaction volume of $310.9 billion between April and June of this year, up 40% year on year. Buy now, pay later

Japan is an expanding market for PayPal too, and its expansion in Asia will allow it to build on the 4.3 million active accounts it already has in the country, which is currently the worlds third-largest e-commerce market. However, in a country frequently praised for its technological innovations, cash continues to be used for 70% of payments.

By acquiring Paidy, which boasts some 6 million members, PayPal could boost its market share considerably. Paidy currently offers a buy now, pay later service that doesn't need a credit card . Having raised 13 billion yen from a George Soros investment fund and remaining so far unlisted, Paidy has a
market capitalization in excess of $1 billion.

Buy now, pay later services are clearly in demand, with the likes of US payment giant Square snapping up Australias Afterpay for around $29 billion. Similarly, Swedens Klarna buy now, pay later operation has raised a sizeable $639 in funding in order to allow it to continue its expansion, highlighting the universal nature of flexible payment plans that appeal to consumers worldwide. Also, check out our roundup of the best ecommerce hosting services



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Link to news story: https://www.techradar.com/news/paypal-snaps-up-japanese-buy-now-pay-later-firm -paidy/


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