PayPal Joins the "Buy Now, Pay Later" Model

PayPal Joins the "Buy Now, Pay Later" Model

PayPal announced it will be joining the "buy now, pay later" model. Want to discover more details? Easy! Read on this article to find out.

PayPal announced it will be joining the "buy now, pay later" model. Want to discover more details? Easy! Read on this article to find out.

PayPal reached an agreement to acquire the Japanese platform Paidy, based on the system "Buy noy, pay later", for 2.72 billion dollars.

PayPal reached an agreement to acquire the Japanese platform Paidy, based on the system "Buy noy, pay later", for 2.72 billion dollars.

"The acquisition will expand PayPal's capabilities, distribution and relevance in the domestic payments market in Japan, the world's third-largest e-commerce market, complementing the company's existing cross-border e-commerce business in the country," reported the company in a released statement.

"The combination of Paidy's brand, capabilities and talented team with PayPal's experience, resources and global scale will create a solid foundation to accelerate our momentum in this strategically important market," they added from Paypal.

Paidy is one of the biggest Japanese unicorns of the moment ("startups" that are not publicly traded with a value of at least one billion dollars), and was created in 2014 by Russell Cummer, although it acquired its current name in 2018. It currently has more than six million registered users.

Paidy is one of the biggest Japanese unicorns of the moment

Its model is based on allowing consumers to shop online and issues a consolidated invoice each month that can be paid at one of Japan's many convenience stores or by bank transfer.

The platform bases its functions on a proprietary technology to rate creditworthiness, underwrite transactions and guarantee payment to merchants.

Its founder, a former credit operator in the Japanese arm of Goldman Sachs, established the business after being denied access to a credit card.

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