**PayPal to Acquire Japanese Startup Paidy**
**PayPal is making its mark in the world of installment payments.**
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A segment of the payment industry gaining momentum is the “buy now, pay later” sector. With the surge in online shopping due to the pandemic, younger shoppers are cautious about accumulating credit card debt for their purchases. These new payment options let shoppers spread their payments over installments rather than making a one-time payment. Companies like Amazon and Square have recently acquired buy now, pay later firms to integrate these services into their platforms.
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Not wanting to fall behind, PayPal has made a significant move of its own. Recently, PayPal revealed its acquisition of the Japanese startup Paidy for a notable 300 billion yen, equivalent to around $2.7 billion USD. PayPal sees this acquisition as a chance to enhance its “capabilities, distribution, and relevance in the domestic payments market in Japan, the third largest e-commerce market globally.”
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Paidy will keep its existing branding in Japan and its current management team. Riku Sugie, the president and CEO of the company, expressed that “Paidy is just getting started, and teaming up with PayPal will speed up our journey to broaden our offerings beyond e-commerce and establish unique services as the new shopping norm.”
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Since its establishment in 2008, Paidy has made a significant impact in the Japanese market, amassing a user base of over 6 million. Users can make online purchases as usual but have the flexibility to pay in monthly installments through a bank transfer or at supported local convenience stores. For Paidy, the PayPal acquisition means a substantial windfall, surpassing its previous valuation of $1.2 billion.
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**Source:** [TheStreet](https://twitter.com/TheStreet/status/1435555453963022339?ref_src=twsrc%5Etfw)
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