PayPal will acquire Paidy for 2.7 billion dollars in the fourth quarter of 2021. According to PayPal’s announcement, Japan is the third largest e-commerce market in the world, which explains the company’s move. Paidy will thus help it expand its importance, distribution and capabilities in Japan’s domestic online payment sector.
Paidy is a payment service that Japanese consumers use to buy things online. It allows them to pay for their purchases later through a bank transfer or a payable bill they receive in convenience stores.
Businesses prepare for more sales and conversions
A survey conducted by ECC Koln on digital payments showed that 74.6% of consumers believe that their online shopping experience is greatly influenced by the store’s payment process.
In addition, over 50% of respondents claimed that they had cancelled an order because no acceptable payment method was available. Therefore, the extensive adoption of the Buy Now, Pay Later service by PayPal will increase customer conversions for Japanese online merchants.
Also considering that Paidy already has a whopping number of 6 million people, businesses are expected to work with PayPal to reach out to this “ready-made” market.
For now, PayPal promises that it will not charge any delay fees for payments omitted under the BNPL programme. With Paidy ensuring entrepreneurs who use its services that they will receive their sales fee for unpaid purchases, it is predicted to be a win-win situation for everyone.
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