Paidy, Japanese BNPL firm raises $120m in series D funding
By Leandra Monteiro
Japanese buy now, pay later (BNPL) company Paidy has raised US$120 million in a Series D funding round. According to media reports, JS Capital Management, Soros Capital Management, Tybourne Capital Management, and Wellington Management joined the round.
Paidy launched its post-pay credit account for ecommerce in 2014, enabling Japanese consumers make online purchases without credit cards. After completing registration, customers make purchases using a mobile phone number and email address with a four-digit SMS or voice verification code, before settling a single monthly bill for all their purchases, either at a convenience store, by bank transfer or auto debit.
According to media reports, Russell Cummer, executive chairman, Paidy said, “As our payment volume increases and “3-Pay” is used by more and more customers, we are strengthening our financial base to secure our growth trajectory as a trusted brand and reliable business partner for our merchants.”
The newly raised funds will be used to expand transactions with large merchants, develop new services and strengthen Paidy’s balance sheet to handle the popularity of its new offering called ‘3-Pay’, which enables users to split charges into three equal, interest-free, monthly instalments. According to the firm now more than five million consumer accounts that can be used at over 700,000 websites.
According to the company, it uses proprietary models and machine learning to underwrite transactions in seconds and guarantee payments to merchants. Paidy increases revenue for merchants by reducing the number of incomplete transactions, increasing conversion rates, boosting average order values, and facilitating repeat purchases from consumers. Paidy continues to reinvent to make shopping easier and more fun both online and offline.
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