Can I buy now, pay later?

The “buy now, pay later” (BNPL) service is heating up! The payments giant PayPal is also joining the race by acquiring the Japanese BNPL firm Paidy.

I’m a bit lost… what’s “buy now, pay later”?

Just understand word by word, BNPL enables us to buy products now and pay in installments later, or simply consider it as a virtual installment without credit checking.

  • Why not just use a credit card? Some don’t even have credit cards, while others are wary of having credit card debt. BNPL can have the same outcome but make them feel better 🙂  

Paidy is the pioneer of BNPL service in Japan. Its flagship “3-Pay” service allows customers to pay their bills in 3 equal installments via bank transfers, or even in cash at convenience stores.

So why does PayPal want to acquire them?

To penetrate the Japanese market and gain more market share 🗾 Japan is the 3rd largest e-commerce market… But guess what? 75% of transactions there are still in cash. It would be nice if Paypal can turn it into cashless with this acquisition 💸

  • Paypal will pay USD 2.7 bln for buying Paidy. After the deal, Paidy will operate independently and keep the original brand.

Just wondering, for this acquisition, can Paypal use the “buy now, pay later” service and pay by installment? 🧐

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