PayPal Holdings Inc. said that it has reached an agreement to acquire Japanese buy-now-pay-later (BNPL) payments platform Paidy for 300 billion yen ($2.7 billion).
In a press release, the U.S. fintech giant announced the deal that is going to be paid principally in cash.
According to PayPal, its acquisition of the Japanese BNPL unicorn will enable it to expand its “capabilities, distribution and relevance in the domestic payments market in Japan, the third-largest e-commerce market in the world, complementing the company’s existing cross-border e-commerce business in the country.”
The deal represents the second-largest acquisition in the BNPL business sector after digital payments platform Square Inc. agreed to buy Australian installment-payment provider Afterpay in a $29 billion all-stock deal.
PayPal said that the payment services of Paidy have enabled Japanese shoppers to buy merchandise online and pay for them on a monthly basis.
“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,” Peter Kenevan, vice president and head of Japan at PayPal, said in a statement.
“Japan has been a vibrant environment for our growth to date and we’re honored to have our team’s hard work and potential recognized by a global leader,” Paidy’s founder and executive chairman Russell Cummer said. “Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping.”
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