(Mainichi)

       TOKYO (Kyodo) -- U.S. payments service provider PayPal Holdings Inc. said Tuesday it will acquire Japanese buy now, pay later venture firm Paidy Inc. for around $2.7 billion largely in cash, in a bid to strengthen its presence in the domestic payments market in Japan.

       The acquisition is expected to close in the fourth quarter of 2021, with PayPal hoping to tap into Paidy's customer base of over 6 million registered users.

       "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 said in a statement Tuesday.

       While PayPal has more than 400 million accounts worldwide, it is not as popular as other payment methods in Japan, where it already engages in cross-border e-commerce business.

       Paidy, launched in 2014, allows Japanese shoppers to make purchases online without a credit card, paying for them each month at a convenience store or via bank transfer instead. The payment service is available on Amazon Japan and other shopping sites.

       Paidy confirmed in a press release Wednesday it will continue to operate its existing business and maintain its brand even after joining PayPal, with the current management team to remain.

       "We're honored to have our team's hard work and potential recognized by a global leader," Russell Cummer, founder and executive chairman of Paidy, said in the statement.

       Font Size S M L Print Timeline 0