Market Overview

Paidy Announces Strategic Investment from Visa


Today, Paidy Inc. ("Paidy"), an instantly-issued post-pay credit
provider, announced an investment from Visa (NYSE:V) as part of the
company's Series C funding. Paidy is Japan's first instantly-issued
post-pay credit service for ecommerce consumers. In addition, the two
companies are partnering on new digital payment experiences that will
give Japanese consumers more options when buying online and in-store.

Paidy does not require pre-registration or a credit card to use; Paidy
consumers purchase products online using a mobile phone number and email
address (verification is established though a four-digit code sent via
SMS) and settle all their purchases in a single monthly bill. Paidy also
supports instalment and subscription payments. There are currently over
1,500,000 Paidy users.1

Visa is working to develop and support new payment methods, as the world
moves beyond plastic and towards digital credentials. In 2017, the scale
of the domestic ecommerce market in Japan expanded by 9.1% to 16.5
trillion yen.2 Japan is among the world's fastest growing
ecommerce markets3, but is also heavily reliant on cash. Visa
and Paidy have a shared objective to offer consumers more convenient
alternatives to current popular payment methods, like cash on delivery.
The companies' collaboration will also support Paidy's expansion into
new types of services for their customers.

"We have been following Paidy's progress and the enhanced shopping
experience they provide at the time of purchase," said Chris Clark,
Regional President, Asia Pacific, Visa. "In Japan there is enormous
opportunity to bring consumers more options to pay, whether all at once
or in instalments, especially when shopping across multiple channels. We
look forward to this partnership to deliver these kind of new

Russell Cummer, Founder and Executive Chairman of Paidy said, "We are
extremely honoured that Paidy's business concept was highly valued by
the world's largest payment network, Visa. Through this tie-up, we
expect to deliver Paidy's frictionless and intuitive transactional
credit to a much broader audience. Furthermore, by adding new payment
functions and diverse financial services, together with Visa, we can
promote our vision of removing barriers and create unique consumer
experiences for as many people as possible."

1 Paidy, August 2018
2 Ministry
of Economy, Trade and Industry, 2017

September 2017

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