Users only need a smartphone and email address to get started. They can buy goods on ecommerce sites in cooperating with Paidy by choosing it as a payment method. A four-digit code is sent to the users smartphone by SMS, which they enter to confirm the purchase. A system based on AI technology examines the users purchase history and makes a credit decision in moments. Users then pay their charges the following month either at a convenience store, by bank transfer or auto debit.
Paidy was established in 2008 by former Goldman Sachs and Merrill Lynch entrepreneur and rolled out its post-pay service in 2014. Itochu, which has a 20% stake in Paidy, has invested USD 42 million in this funding round to accelerate its development as a financial service. Paidy did not disclose how much it secured from other investors.
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