PayPal Holdings, Inc. (NASDAQ: PYPL) today proclaimed that it has got ready to acquire Paidy, a principal two-sided payments platform and provider of buy now, pay later solutions in Japan, for ¥300 billion or approximately US$2.7 billion, predominantly in currency.
The acquisition will expand PayPal’s abilities, distribution and relevance in the domestic payments market in Japan, the third largest E-commerce market globally, accompanying the firm’s existing cross-border E-commerce commercial in the nation.
Statement from Vice President, head of PayPal, Peter Kenevan, in Japan: –
“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,” said Peter Kenevan, vice president, head of Japan at PayPal. “Combining Paidy’s brand, capabilities and talented team with PayPal’s expertise, resources and global scale will create a strong foundation to accelerate our momentum in this strategically important market.”
Benefits of Paidy’s Payment Services to Japanese Clients: –
Paidy’s payment services allow Japanese shoppers to make purchases online, and then pay for them each month in a consolidated bill at a convenience store or via bank transfer. The company uses proprietary technology to score creditworthiness, underwrite transactions and guarantee payment to merchants.
Paidy helps consumers feel comfortable and safe while shopping online and drives increased conversion rates, average order values and repeat purchases for merchants.
Statement from Russell Cummer, founder and executive chairman of Paidy: –
“There is no better home for Paidy to continue to grow and innovate than PayPal, which has been removing friction from online shopping for more than 20 years,” said Russell Cummer, founder and executive chairman of Paidy. “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. Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping.”
Statement from Riku Sugie, President and CEO of Paidy: –
“Paidy is just at the beginning of our journey and joining PayPal will accelerate our plans to expand beyond ecommerce and build unique services as the new shopping standard,” said Riku Sugie, president and CEO of Paidy. “PayPal was a founding partner for Paidy Link and we look forward to working together to create even more value. Thank you to our community of merchants and users who helped us get to this important milestone.”
Subject to customary closing conditions, including the receipt of regulatory approvals, the transaction is expected to close in the fourth quarter of 2021. The acquisition is expected to be minimally dilutive to non-GAAP earnings per share in 2022.
BofA Securities is acting as sole financial adviser to PayPal, and White & Case is acting as lead legal adviser with regard to the transaction. Goldman Sachs is acting as the sole financial adviser to Paidy, while Cooley LLP and Mori Hamada & Matsumoto are acting as its legal advisers.
Following the acquisition, Paidy will continue to operate its existing business, maintain its brand and support a wide variety of consumer wallets and marketplaces. Cummer and Sugie will continue to lead the Paidy team.