PayPal will acquire a “Buy Now, Pay Later” service in Japan called Paidy in the fourth quarter for $2.7 billion, the company announced today (September 7).
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 move comes just over a month after online payments service Square announced it would acquire AfterPay for in a $29 billion stock deal.
PayPal also recently announced that next month it would no longer charge late fees for missed payments on its buy now, pay later products.
In announcing its deal this evening, PayPal said, “The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, the third largest ecommerce market in the world, complementing the company’s existing cross-border ecommerce business in the country.”
Paidy has over six million registered users. “Its integrations with PayPal and other digital and QR wallets through Paidy Link expands Paidy’s reach to online and offline merchants beyond its platform,” according to the announcement.
The principally cash deal is subject to customary closing conditions, including the receipt of regulatory approvals.
The full press release is available on the PR Newswire website.