PayPal to Purchase the "Buy Now, Pay Later" Service Paidy
The top-rated digital payment platform, PayPal, is set to acquire the Japanese payment service and expand its presence in the local markets. Get the inside scoop on how PayPal’s purchase of the buy now, pay later service Paidy can impact online merchants.
Details of the Acquisition
PayPal is acquiring Paidy for $2.7 billion in the fourth quarter. As per PayPal’s announcement, the reason is that Japan is the third biggest eCommerce market worldwide.
Paidy will help them expand their relevance, distribution, and capabilities within Japan’s domestic payments sector.
Paidy is a payment service that Japan-based shoppers use to buy stuff online. It allows them to pay for their purchases later through bank transfer or a payable bill they receive at convenience stores.
Businesses Brace for More Sales and Conversions
Research conducted by ECC Koln regarding online payments showed that 74.6% of consumers believe their online shopping experience is highly affected by the store’s payment process.
In addition, over 50% of the respondents claimed that they had canceled an order because there was no acceptable payment method available.
So, greater adoption of the ‘Buy Now, Pay Later’ service by PayPal would increase customer conversions for Japanese online merchants.
Also, considering that Paidy already has a whopping six million registered users, eCommerce businesses would be wise to partner up with PayPal and reach this ready market.
A Win-Win for Everybody
For now, PayPal promises not to charge late fees on missed payments within the Buy Now, Pay Later scheme. And seeing as how Paidy guarantees that vendors using its services receive their sales payments for unpaid receivables, this promises to be a win-win situation for everyone involved.
If you’re ready to level up your eCommerce venture, schedule a time to talk with us and let’s discuss your eCommerce challenges.