PayPal acquires Paidy: A bold move into Asia

by Angie M
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Paying with PayPal is already very common since you can make money from your card or bank account and make purchases anywhere in the world with the assurance that if there is a problem PayPal will solve everything faster and easier. PayPal bought Paidy for $ 2.7 billion, this is the second-largest acquisition to date after buying the automatic coupon aggregator Honey for $ 4 billion.

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Paidy’s services allow users to divide purchases into multiple monthly payments without paying any interest. Instead, PayPal and other providers make money by charging merchants commissions when a consumer purchases a product, similar to how credit card providers do.

Paidy differs from other BNPL companies (buy now, pay later) in that it allows Japanese consumers to buy items online and then pay for them in person at local stores. PayPal does not currently offer a BNPL service in Japan, so the acquisition will help you enter that market.

“Paidy has pioneered buy now and pay later solutions tailored to the Japanese market,” said PayPal Japan Director Peter Kenevan. “The combination of Paidy’s brand, capabilities, and talented team with PayPal’s experience, resources, and global scale will create a strong foundation to accelerate our momentum in this strategically important market.”

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Paypal has become one of the most widely used payment services worldwide as online purchases have been growing, and many of them opt for this payment method. The boom in new technologies has brought about important changes in society, and in the way we act. 

Before Paypal and others, all transactions were done offline, now doing it online is something indisputable and easily accessible. This has led to the emergence of a variety of payment methods for digital transactions. This was when Paypal originated, an American company that allows online money transfers for almost all users in the world. It is a digital alternative that emerges as a safe and effective payment method compared to other more traditional methods such as money orders, for example. It was created in 1998 by Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery, and its headquarters are in San José, California. 

One of the problems that users have faced when making purchases online is achieving security and efficiency in transactions. This is one of the advantages offered by this online payment option. In addition to this, it allows the following: 

Immediate transfers. It is one of the greatest advantages it offers since, unlike some banks, or branches that can take several days, this option is carried out instantly. 

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Currency exchange. It is another success of Paypal. You can convert one currency into a different one thanks to this payment option. You can exchange dollars for euros, for example, that way it allows you to carry out almost all kinds of transactions. 

Security. An online payment usually offers different options: credit card, debit card, bank transfer (which slows down the process because they have to check the arrival of the money), and Paypal. In the latter case, this option allows to give security to the user since they do not have to give their data as in credit cards, but Paypal is associated with a bank account and thus offers certain privacy at the time of carrying out carry out that transaction effectively. 

Simplicity when making an opening. When you want to open a bank account, or request a card associated with it, you have to carry out various procedures that are not immediate. In the case of a credit card, you will have to wait days to receive it. But in Paypal, simply with an email, you can open an account in a matter of minutes. 

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Easy to use. To send and receive payments it is only necessary to know the email used by the person on the platform and send the amount. The same process that exists when someone wants to send us money. It will ask us for the email, and we will receive the agreed amount. 

These are the most prominent disadvantages of Paypal.

Allow a savings limit. The platform requires you to verify the account with a credit card if you want to have large amounts of money in it. It is not a very complex process, but you will have to take it into account if it is your case. Commissions. It is a platform that in certain transactions requires commissions. Paypal charges a commission to the seller for using Paypal as a payment platform if they have any type of business, and the sale is related to it. But it does not charge when a payment is made to an individual, or company that has already fixed its price in advance of the product that is being purchased. 

There are personal and company accounts options that will be used if you want to associate a specific business as a payment option. Withholding of payments. Companies that use Paypal as a form of online payment can be harmed by this policy that sometimes, and depending on the transactions that took place, the platform can run. As you will see, Paypal, like the rest of the payment methods, has advantages and disadvantages. But while it is true that it has become a global reference platform to carry out payments in almost the entire world. In addition, its simplicity when opening an account, and its ease of use have made it a world reference. 

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