Paidy Raises $120 Million to Expand Business Operations

By McKenzie Carpenter Friday, April 2, 2021

For people who may not necessarily have a ton of extra money in the bank, the buy now pay later (BNPL) method of shopping is a better financial option. Paidy, a BNPL app startup, announced today the business raised $120 million.

A woman paying for something on her phone with a credit card.

About Paidy

Paidy is a Japanese fintech startup company with an app that uses a buy now pay later method of transactions. Founded in 2008, the BNPL fintech business has the corporate mission to “take the hassle out of your payment and purchase experiences” to create a more pleasant shopping experience for consumers.

The startup company does not require consumers to have a credit card or pre-registration; instead, it uses email addresses and mobile phone numbers to confirm purchases. Consumers are then allowed to pay for their transactions once a month at a convenience store or at a bank. In addition, the BNPL startup recently started offering “3-pay,” allowing consumers to split their transactions into three equal, interest-free monthly installments.

The BNPL business platform can be used at more than 700,000 ecommerce stores, including Amazon, Gladd,, Dean & Deluca, and Rakuten. PayPal, Visa, Goldman Sachs, Eight Roads, and several others have invested in the fintech startup.

The Fintech Company Secures $120 Million in Series D

On Wednesday, Paidy announced the startup company raised $120 million in a Series D financing round led by JS Capital Management LLC, Soros Capital Management LLC, Tybourne Capital Management Ltd, and Wellington Management. This brings the total amount of equity and debt financing to around $585 million for the fintech business.

According to the press release, the fintech startup app has amassed more than 5 million consumer accounts.

Russell Cummer, founder and executive chairman of Paidy, said in the press release, “Having the support of a powerful lineup including our existing shareholder JS Capital and Soros Capital of the United States and Tybourne of Hong Kong, and Wellington Management, makes me feel very encouraged about the future growth potential of a born-in-Japan startup that offers new values to the world…”

With the new funding, the fintech company will use the capital to expand business operations by developing new services, magnifying transactions with larger merchants, and strengthening its balance sheet as a response to the rapid growth of 3-pay.

When commenting on funding for the startup company, James Chang, an investment partner of JS Capital and Soros Capital, added in the press release, “As existing investors, we are pleased to support Russell, Riku and the entire Paidy management team with financial and strategic support by co-leading this financing round. Paidy’s team, brand, technology, and network have grown tremendously since our initial investment, and we are excited about their prospects as a leader in services for both customers and merchants in Japan.”

About the BNPL Industry

Paidy is just one example of a buy now pay later service. AfterPay, Klarna, Affirm, PayPal Credit, and many others are all competitors to the Japanese fintech app startup. Business Insider reported that the growing ecommerce market and the global pandemic could lead the buy now pay later industry to make around $680 billion by 2025, growing at a CAGR of 13.23% from 2018.

About the Author

Headshot of McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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