Paidy

Paidy is a Japanese payment service founded in 2008, acting as an intermediary between consumers and sellers in Japan. Using machine learning, he determines the creditworthiness of the consumer in connection with a particular purchase, and then in a matter of seconds underwrites these transactions, guaranteeing payments to sellers. Consumers then make a deferred payment to Paidy for these items.

History

2021: PayPal bought Paidy for $2.7 billion

On September 7, 2021, PayPal announced the purchase of Paidy for $2.7 billion. After the sale, the Japanese company will continue to conduct its existing business and support the brand, and Paidy executives, president and CEO Riku Sugi and Paidy founder and executive chairman Russell Kammer will retain their posts, the press release said.

Japan is the third largest e-commerce market in the world, and is therefore a significant step by PayPal to gain greater market share, both in the country and in the region, especially in the provision of deferred payment services as an alternative to credit cards.

PayPal bought Paidy installment payment service for $2.7 billion

The Paidy platform, which offers a monthly installment service under the 3-Pay brand, allows customers to shop online, and then pay them monthly on a collective account in the store or by bank transfer. Paidy pioneered solutions (buy now - pay later) adapted for the Japanese market and quickly became a leading service, creating a large two-way platform for consumers and sellers, "said Peter Kenevan, vice president, head of the Japanese branch of Paypal.

The company is PayPal already associated with payment cards and is actively working with them. Users can upload their card data to the PayPal and use it as a digital wallet so that people can manage or monitor their payments. From this point of view, Paidy is a good fortification for PayPal, providing the opportunity to own cash flow on its own infrastructure, without the participation of card networks.

Paidy has more than 6 million registered users. It is planned to integrate PayPal and other digital and QR wallets with Paidy Link for further connection of online and offline merchants.

Japan has been a favorable environment for our growth today, and it is a great honor for us that the hard work and potential of our team are recognized as a world leader. Together with Paypal, we will be able to further realize our mission to eliminate the hassle associated with purchases, said Paidy founder and chairman Russell Kamer.

In April 2021, the Japanese company launched Paidy Link, which allows users to associate digital wallets with their Payidy account. PayPal became the first digital wallet partner integrated with Paidy Link.^[1]

Notes