PayPal To Acquire , Buy Now, Pay Later Firm Paidy for $2.7B.
The $2.7 billion largely cash deal to acquire
the Japanese buy now, pay later (BNPL) company
is PayPal's latest move to stay competitive in the industry.
BNPL has proven extremely successful amid the pandemic by providing consumers with an alternate way of financing purchases with interest-free installments.
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, PayPal, via statement.
Paidy will maintain its brand and continue to run its existing business.
Founder and Chairman Russell Cummer and President and Chief Executive Riku Sugie will also keep their roles.
The deal is expected to close in
the fourth quarter of 2021.
Last month, rival Square struck an agreement to buy Australia's Afterpay for $29 billion.
Apple and Goldman Sachs are also reportedly planning to get in on the BNPL business model.
Apple and Goldman Sachs are also reportedly planning to get in on the BNPL business model
