Payment Methods

PayPal Among Investors In $143M Funding For Japan’s Paidy

Japan’s instant credit startup Paidy raised $143 million in a Series C extension funding round, the company announced in a press release on Thursday (Oct. 31). 

New and past investors participated in the round, including PayPal, Soros Capital Management, JS Capital Management and others. This is the largest investment to date in Japan’s FinTech industry.

The funding includes debt financing of $60 million from Goldman Sachs Japan, Mizuho Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank. Earlier in October, Paidy and Goldman Sachs Japan established a warehouse facility valued at $52 million.

Paidy will use the funds to expand its client roster to 11 million by the end of 2020 and offer more financial services by partnering with bigger merchants. 

“As the Paidy network continues to grow, we are very pleased to continue innovating and to offer best-in-market solutions to merchants and new frictionless payment experiences to consumers. We are pleased that our vision of an instant buy-now pay later consumer experience has been validated by millions of consumers and by global leaders like PayPal and Goldman Sachs,” said Paidy’s founder, Russell Cummer.

Paidy was launched in 2014 and uses machine learning to offer instant credit to consumers and payment guarantees to merchants throughout Japan. Paidy also helps boost merchant revenues by reducing incomplete transactions and increasing conversion rates.

Consumers who go online to buy products from participating merchants can select the Paidy option during checkout. They use mobile phone numbers and email addresses for the transaction, accept the fee and then they receive a code via SMS that is used to complete the purchase. 

Consumers can also opt for an installment plan, spreading payments out for up to 36 months. Payments for the purchase come via a single monthly bill that can be settled at a convenience store, by bank transfer or via auto-debit. Allowing consumers to settle the bill in such a way is Paidy’s way of replicating the unique consumer desire in Japan to pay at convenience stores, and of enabling merchants to offer a new payment option without moving too far away from existing systems and customs.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.