The deal will be paid for principally in cash. According to the Financial Times, the move deepens PayPal’s push into the crowded BNPL sector, in which consumers spread the cost of goods over a small number of payments, typically without interest and often without requiring a credit check.
Paidy, founded in 2008, is one of Japan’s few unicorns, startups worth more than USD 1 billion. The company launched the country’s first zero-interest post-payment service in 2020. Paidy allows its 6 million registered users to split the cost of goods into three equal instalments with no interest. Users can pay off their balance using cash at convenience stores or bank transfers.
Paidy was valued at USD 1.3 billion when it raised USD 120 million in March 2021, and was expected to list its shares in Tokyo in 2021. It has been backed by trading house Itochu, Goldman Sachs and Soros Capital Management along with PayPal.
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