PayPal Holdings Inc (NASDAQ: PYPL) bought a BNPL start-up in Japan called Paidy in a deal worth $2.7 billion. The figure in question translates to 300 billion yen. The Covid-19 outbreak caused many job losses, but matters turned out differently for the U.S. payments giant. It experienced a boom in demand for digital payments solutions, which triggered it to expand its capabilities.
Paypal’s take on the new purchase
The BNPL schemes also benefited greatly from the Covid-19 outbreak, a change that caused them to grow in popularity. It was an excellent opportunity for the various digital payments, and most of them took advantage of the boom. But, on the other hand, most governments gave directives to consumers asking them to stay at home.
The governments considered the lockdowns introduced to be part of the remarkable ways to curb the general spread of the deadly virus. Consumers had to survive, and online shopping suddenly became the way to go for most people.
Paypal takes great pride in the acquisition of Paidy, showing great optimism that it might be what it takes to strengthen further its business standing in Japan. Reports show Japan’s massive growth, and it currently happens to be the third-largest e-commerce market globally. Therefore, the company seizes the opportunity at hand, outlining that it will do a lot in c9omplemneting its existing cross-border e-commerce business.
The vice president and head of Japan at PayPal, Peter Kenevan, opines, “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. 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.”
Paypal expects to complete the new acquisition in the fourth quarter. The company confirms that the deal won’t affect its adjusted earnings per share in 2022 significantly.
Paidy founder and executive chairman Russell Cummer is quite pleased with Paypal’s move, outlining that they will work together to reduce the hassle out of shopping.
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