Asian Tech Press (SEP 08) -- PayPal announced Wednesday that it will acquire Japanese "buy now, pay later" startup Paidy for US$2.7 billion.

PayPal said the acquisition will be paid mainly in cash and is expected to close in the fourth quarter, with a very limited impact on its adjusted earnings per share in 2022.

Japan is the world's third-largest online shopping market, but one of the few developed markets still uses paper money as its primary currency. According to PayPal, nearly 3 out of 4 transactions in Japan are paid in cash.

Paidy stands out among the world's "buy now, pay later" vendors by allowing Japanese consumers to buy goods online and pay them back in person at a local convenience store each month. The company was founded in 2010 and has 4.3 million active accounts.