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PayPal to Acquire Paidy Expands PayPal's reach in Japan and enhances global portfolio of buy now , pay later solutions SAN JOSE , Calif . , September 7 , 2021 / PRNewswire / - PayPal Holdings , Inc. ( NASDAQ : PYPL ) today announced that it has agreed to acquire Paidy , a leading two - sided payments platform and provider of buy now , pay later solutions in Japan , for ¥ 300 billion or approximately US $ 2.7 billion , principally in cash . 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 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 . " 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 . Paidy's ability to rapidly develop and successfully launch innovative products , including its Paidy 3 - Pay monthly installment offering , has driven strong engagement with its more than six million registered users and helped establish strategic relationships with leading global brands and online marketplaces . 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 . " 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 . " " 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 . " 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 . 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 .