Over 40% of online transactions in Japan are non-credit card purchases. Paidy facilitates online transactions by guaranteeing the payment to the merchant and assuming all the risks involved. The company charges a 3% fee to the merchant, competing directly with credit card companies. About 200k Japanese merchants accept Paidy.
Japan is known around the world for its cutting-edge technology, but it remains a largely cash-based society. Avoiding credit cards might help big spenders stay out of debt, but online shopping options are severely limited without plastic. Exchange Corporation (ExCo) wants to change that with its Paidy service, which allows ecommerce shoppers to buy now and pay later without a credit card. The Tokyo-based fintech startup today announced that it has expanded its series A funding by US$5 million, bringing the total to US$8.3 million.