PayPal snaps up Japanese buy-now-pay-later unicorn for $2.7 billion

Business

CNN International 08 September, 2021 - 03:09am 34 views

Updated 4:09 AM ET, Wed September 8, 2021

You can set your browser to block or alert you about these cookies, but some parts of the site will not work.

Read full article at CNN International

PayPal to buy Japan's Paidy for $2.7 billion in cash

Seeking Alpha 08 September, 2021 - 08:10am

Tech in Asia - Connecting Asia's startup ecosystem

Tech in Asia 08 September, 2021 - 08:10am

Copyright © 2021 Tech in Asia. All Rights Reserved.

Tech in Asia - Connecting Asia's startup ecosystem

PRNewswire 08 September, 2021 - 08:10am

Copyright © 2021 Tech in Asia. All Rights Reserved.

PayPal acquires buy now, pay later provider Paidy | Engadget

Engadget 08 September, 2021 - 03:22am

BNPL services let users divide purchases into multiple payments with paying any interest. Instead, PayPal and other providers make money by charging fees to merchants when a consumer buys a product, much as credit card providers do. PayPal's move follows Jack Dorsey's Square much larger acquisition of Australian BNPL firm AfterPay for $29 billion. 

Paidy differs from other BNPL firms in that it allows Japanese consumers to purchase items online and then pay them off in person at local convenience stores. PayPal doesn't currently offer a BNPL service in Japan, so the acquisition will help it break into that market. 

“Paidy pioneered buy-now-pay-later solutions tailored to the Japanese market,” said PayPal Japan chief Peter Kenevan. “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 to Buy Japan’s Paidy for $2.7 Billion

The Wall Street Journal 08 September, 2021 - 02:54am

The transaction adds to a flurry of activity involving companies that let consumers pay for purchases in installments, as an alternative to traditional forms of credit. In August, Square Inc. said it would buy Australia’s Afterpay Ltd. for about $29 billion, while Affirm Holdings Inc. entered a partnership with Amazon.com Inc., sending the financial-technology group’s shares soaring.

You will be charged $ + tax (if applicable) for The Wall Street Journal. You may change your billing preferences at any time in the Customer Center or call Customer Service. You will be notified in advance of any changes in rate or terms. You may cancel your subscription at anytime by calling Customer Service.

Please click confirm to resume now.

PayPal to Buy Japanese Unicorn Paidy in $2.7 Billion Deal

Yahoo Finance 07 September, 2021 - 11:06pm

The acquisition will be “minimally dilutive” to adjusted earnings per share in 2022, PayPal said Tuesday in a statement. The deal, which is expected to close in the fourth quarter, will be paid for principally with cash, PayPal said.

Japan is home to the world’s third-largest market for online shopping but it is also one of the few developed markets where paper currency is still king. Nearly three-quarters of all purchases in the country are still paid for in cash, PayPal said.

Paidy, then, is unusual among the world’s buy-now-pay-later providers because it allows Japanese consumers to purchase items online and pay them off each month in person at local convenience stores. The firm, founded in 2010, has 4.3 million active accounts.

“There is no better home for Paidy to continue to grow and innovate than PayPal, which has been removing friction from online shopping for more than 20 years,” said Russell Cummer, founder and executive chairman of Paidy.

Read more: Ex-Goldman Trader Builds Unicorn After Being Denied Credit Card

PayPal said Cummer and Riku Sugie, president and chief executive officer of Paidy, will continue to lead the business. Paidy will also maintain its brand and operate its existing businesses.

Buy-now-pay-later (BNPL) options allow users to split purchases into smaller payments without charging any interest, and instead make most of their money by collecting a small amount from merchants each time a consumer uses the product. Their usage is surging worldwide amid the pandemic-fueled e-commerce boom.

The Paidy deal comes after Jack Dorsey’s Square Inc. agreed last month to buy Australian BNPL firm Afterpay Ltd. for $29 billion. Sweden’s Klarna Bank AB raised funds in June at a valuation of $45.6 billion, with SoftBank Group Corp. leading the funding round. PayPal itself began offering a BNPL service last year and customers have since used it to make $3.5 billion in purchases.

Read more: ‘Buy Now, Pay Later’ Installment Plan Is Having a Moment Again

Paidy’s backers include Soros Capital Management, Visa Inc. and Japanese trading house Itochu Corp. The startup raised $120 million in its most recent funding round in March, which research firm CB Insights said took its valuation to $1.2 billion.

Cummer, a Canadian, set up the firm after working as a credit trader at Goldman Sachs Group Inc. in Tokyo. Paidy began offering BNPL services in 2014. It can be used on Amazon.com Inc.’s Japanese site, and launched a tie-up with Apple Inc. in June for customers making purchases from Apple in Japan.

“Paidy pioneered buy-now-pay-later solutions tailored to the Japanese market,” said Peter Kenevan, head of Japan at PayPal. “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.”

Bank of America Corp. served as sole financial adviser to PayPal, and White & Case was its lead legal adviser for the deal. Goldman Sachs was Paidy’s sole financial adviser, while Cooley and MHN were its legal advisers.

(Adds details on industry, Paidy from eighth paragraph)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

(Bloomberg) -- Coinbase Global Inc. was warned by the Securities and Exchange Commission against launching a product that would allow consumers to earn interest on their crypto holdings. The U.S.’s biggest cryptocurrency exchange said it received a Wells notice saying the agency will bring an enforcement action if the company goes ahead with its Lend product. Coinbase expressed surprise at the SEC’s move, in a blog post, adding it plans to delay the launch at least until October.“The SEC has tol

More than 1,000 people held a protest against El Salvador's adoption of bitcoin on Tuesday.

Paidy's buy now, pay later service is notable for how it's tailored to Japanese society, where paper cash payments for products are still very popular.

Following Tuesday’s meltdown, Dogecoin would need to break back through to $0.30 levels to restore confidence…

SAN SALVADOR (Reuters) -El Salvador's historic adoption of bitcoin as legal tender on Tuesday was beset by teething problems, as an angry protest https://www.reuters.com/world/americas/salvador-street-protest-breaks-out-against-bitcoin-adoption-2021-09-07 by mistrustful citizens, technological glitches and a dip in the cryptocurrency clouded the rollout. The bold experiment got off to a bumpy start when shortly after midnight, Salvadoran President Nayib Bukele complained the government-backed bitcoin app was not available on various internet platforms including Apple and Huawei. Bukele used his Twitter account to press online stores to stock the app, or digital wallet, known as Chivo, and Huawei later began making it available.

OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today announced the integration of N–central® into its Webroot® Business Endpoint Protection platform. The flagship remote monitoring and management (RMM) platform from N–able™, N–central gives customers the power to manage, automate, and protect at scale. The integration provides Managed Service Providers (MSPs) easy access to Webroot's layered security ecosystem that small and medium sized businesses (SMBs) rely on to become more cyber resilient.

(Bloomberg) -- On Holding AG, the owner of high-performance shoemaker On Running, and its existing shareholders filed on Tuesday to raise as much as $622 million in one of the first initial public offerings to take advantage of the post-Labor Day listings window. The shoe brand, which counts tennis legend Roger Federer among investors, would have a market value of more than $6 billion in the listing based on the outstanding shares listed in its filing with the U.S. Securities and Exchange Commis

SHANGHAI (Reuters) -China on Wednesday banned private tutors from giving classes online or in unregistered venues such as residential buildings, hotels and coffee shops, ramping up its effort to stamp out all for-profit tutoring. Authorities this year banned for-profit tutoring in subjects on the school curriculum in an effort to ease pressure on children and parents. A competitive higher education system has made tutoring services popular with parents but the government has sought to reduce the cost of child-rearing in an effort to nudge up a lagging birthrate.

(Bloomberg) -- Earnings day hasn’t been kind to GameStop Corp. investors -- and analysts, options trading and recent history suggest Wednesday evening’s won’t likely be any different.Shares of the video-game retailer have tumbled 18% on average the day after earnings since June 2019 and gained on such reports only twice since the start of 2018. Add on that the options market implies the stock will swing 15% by the end of Thursday’s session and it suggests it could be a choppy few days ahead for

Coupa stock popped after earnings and revenue topped estimates amid an acquisition spree. Guidance also came in above Wall Street targets.

China's exports unexpectedly grew at a faster pace in August thanks to solid global demand, helping take some of the pressure off the world's second-biggest economy as it navigates its way through headwinds from several fronts. Shipments from the world's biggest exporter in August rose 25.6% year-on-year, picking up speed from a 19.3.% gain in July, customs data showed on Tuesday, pointing to some resilience in China's industrial sector. "While near-term headwinds remain, supply constraints in China have eased and we think the global economic recovery will continue to underpin China’s exports later this year and in 2022," said Louis Kuijs, head of Asia economics at Oxford Economics.

Since the pandemic’s depths, oil’s sizzling rally has been interrupted as delta spreads, curtailing fuel consumption. It is expected that the market will tighten through the end of the year after China, the world’s largest oil importer has contained its outbreak of variants

The SEC chief tells Barron’s that the current trading regime has too many “inherent conflicts of interest” that are putting investors at a disadvantage.

(Bloomberg) -- SoftBank Group Corp. rose for a second day in Tokyo as investors’ hopes grew for another share repurchase program, following the announcement of a complex deal with Deutsche Telekom AG. Shares rose as much as 11% at one point in Tokyo trading, before paring much of those gains to close 4.6% higher. That took its two-day gain to about 15%, amid a recent broader rally in Tokyo markets. SoftBank was nonetheless the biggest contributor to gains on the Nikkei 225 Stock Average, which r

(Bloomberg) -- JPMorgan Chase & Co. is buying a majority stake in Volkswagen AG’s payments platform, extending its services further into the auto industry.The U.S. bank said it will acquire close to 75% of Volkswagen Payments SA in a statement Wednesday. It plans to work with the car manufacturer to develop the platform for new markets that could use internet-connected vehicles as a way to pay.Volkswagen Payments was launched in 2017 and operates in 32 countries. It offers customers the option t

Stop sinking your money into mediocre companies.

If the high-water price target for each of the following five stocks were to come to fruition, shareholders would be looking at gains ranging from a low of 195% to as much as 467%. If you're "only" looking to triple your money, analyst Amit Dayal of H.C. Wainwright would suggest putting it to work in hydrogen fuel-cell solutions company Plug Power (NASDAQ: PLUG). Dayal's price target of $78 implies a cool 195% upside from where its shares closed this past weekend.

The stock market looked poised to open mixed on Wednesday morning, as investors once again tried to balance the bullish and bearish factors at play on Wall Street. Both UiPath (NYSE: PATH) and Coty (NYSE: COTY) were down sharply in premarket trading, and their combined negativity could eat away at some of the bullishness that's been pervasive in the investing community lately.

What's better than getting a big dividend from an S&P 500 stock? Getting an even larger dividend payment this year.

Sanofi adds another bolt-on acquisition in what is turning out to be a busy year for the French pharma titan.

PayPal snaps up Japanese buy now, pay later firm Paidy for $2.7B

Fox Business 07 September, 2021 - 09:55pm

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital SolutionsLegal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Check out what's clicking on FoxBusiness.com.

U.S. payments giant PayPal Holdings Inc said it would acquire Japanese buy now, pay later (BNPL) firm Paidy in a $2.7 billion largely cash deal, taking another step to claim the top spot in an industry witnessing a pandemic-led boom.

The deal tracks rival Square Inc's agreement last month to buy Australian BNPL success story Afterpay for $29 billion, which experts said was likely the beginning of a consolidation in the sector.

The BNPL business model has been hugely successful during the pandemic, fueled by federal stimulus checks, and upended consumer credit markets.

These alternative credit firms make money by charging merchants a fee to offer small point-of-sale loans which shoppers repay in interest-free installments, bypassing credit checks.

Heavyweights like Apple Inc and Goldman Sachs are the latest heavyweights that have been reported to be readying a version of the service.

Paypal, already considered a leader in the BNPL market, also entered Australia last year, raising the stakes for smaller companies such as Sezzle Inc and Z1P.AX Co Ltd , stocks of which were down in midday trading on Wednesday.

"The acquisition will expand PayPal's capabilities, distribution and relevance in the domestic payments market in Japan, the third largest ecommerce market in the world, complementing the company's existing cross-border ecommerce business in the country," PayPal said in a statement on Tuesday.

After the acquisition, Paidy will continue to operate its existing business and maintain its brand. Founder and Chairman Russell Cummer and President and Chief Executive Riku Sugie will continue to hold their roles in the company, PayPal said.

The Financial Times had reported last month that Paidy was considering becoming a publicly listed company.

The transaction is expected to close in the fourth quarter of 2021, and will be minimally dilutive to PayPal's adjusted earnings per share in 2022.

BofA Securities was the sole financial adviser to PayPal on the deal, and White & Case was lead legal adviser. Goldman Sachs advised Paidy, and Cooley LLP and Mori Hamada & Matsumoto provided it legal counsel.

(Reporting by Anirudh Saligrama in Bengaluru; Writing by Sayantani Ghosh; Editing by Ramakrishnan M. And Kim Coghill)

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Business Stories