Click For Photo: https://techcrunch.com/wp-content/uploads/2016/07/paidy.jpg?w=602
Paidy, a fintech startup that enables Japanese consumers to shop online without using a credit card, announced today that it has raised a $55 million Series C. The round was led by Japanese trade conglomerate Itochu Corporation, with participation from Goldman Sachs.
The Tokyo-based startup says this brings its total funding so far to $80 million, including a $15 million Series B announced two years ago. One notable fact about Paidy’s funding is that it’s raised a sizable amount for Japanese startup, especially one with non-Japanese founders (its CEO and co-founder is Canadian and Goldman Sachs alum Russell Cummer, left in the photo above with CTO and co-founder Lee Smith).
Paidy - Japan - Credit - Card - Penetration
Paidy was launched because even though Japan’s credit card penetration rate is high, their usage rate is relatively low, even for online purchases. Instead, shoppers pay cash on delivery or at convenience stores, which function as combination logistics/payment centers in many Japanese cities.
This is convenient for buyers because they don’t have to enter a credit card online or worry about fraud, but a hassle for businesses that often need to float cash for merchandise that hasn’t been paid for yet or deal with...
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