Us payments giant PayPal Holdings Inc announced on Wednesday that it would buy Japanese "buy and pay" start-up Paidy for 300 billion yen ($2.7 billion).
PayPal Holdings Inc said the acquisition, which will be paid mainly in cash, is expected to be completed in the fourth quarter, with a very limited impact on its adjusted earnings per share in 2022.
Japan is the third largest online shopping market in the world, but it is also one of the few developed markets that still use paper money as the main currency. PayPal Holdings Inc said nearly 3/4 of Japan's transactions are still paid in cash.
As a result, Paidy is a bit different among global "buy-and-pay" suppliers because it allows Japanese consumers to buy goods online and repay them in person at local convenience stores every month. The company was founded in 2010 and has 4.3 million active accounts.