PayPal Holdings Inc. has said it will acquire the Japanese upstart Paidy Inc. for ¥300 billion ($2.7 billion) as it seeks to deepen a push into buy-now-pay-later products.
The acquisition will be "minimally dilutive” to adjusted earnings per share in 2022, PayPal said Tuesday in a statement. The deal, which is expected to close in the fourth quarter, will be paid for principally with cash, PayPal said.
Japan is home to the world’s third-largest market for online shopping but is also one of the few developed markets where paper currency is still king. Nearly three-quarters of all purchases in the country are still paid for in cash, PayPal said.