US-headquartered fintech giant PayPal Holdings has announced an acquisition of Paidy, a Japan-based buy now, pay later (BNPL) firm.
The deal is valued at about US$2.7 billion (300 billion yen), primarily in cash, and is part of PayPal’s effort to improve and expand operations in Japan.
Being that the deal is still subject to the customary regulatory approvals, the schedule for its completion currently puts final closure somewhere within the fourth quarter of 2021.
Upon completion of the transaction, the Japan-headquartered firm will retain the operation of its existing business under the same brand.
The top executives of the firm, Paidy’s president and CEO Riku Sugie and founder and executive chairman Russell Cummer, will also be allowed to remain in their respective roles.
Renowned as the largest e-commerce market globally, penetrating and expanding its operations in Japan is a beneficial strategic move for PayPal.
The deal provides an opportunity for Paypal to expand market share both in the country and regionally, particularly to provide deferred payments as a better option than credit cards.
Paidy’s platform provides a monthly payment installment service branded “3-Pay”, enabling shoppers to buy online and pay monthly at a convenience store or via bank transfer.
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