Paidy launches new six months BNPL on Amazon Japan

Paidy has launched a new BNPL feature for six monthly installments on Amazon Japan, supplementing previous features of I) deferring payment until the next month and II) BNPL in three monthly installments. Paidy states that this is the first time six months installment payments are available in Japan free of fees (provided bank transfer is used to pay).

In October 2020, Paidy became the first company in Japan to offer three monthly installments without any fees. The offer of an extended installment period is a joint initiative with Amazon to create a better customer experience amid the growing use of e-commerce. Paidy plans to introduce the same feature at other merchants.

Paidy sees high acceptance of its BNPL features among Generation Z.

In our Japan FinTech Outlook 2023, we have highlighted that the adoption of B2C BNPL in Japan is still quite low, at 3% of e-commerce. There is a strong correlation between the level of e-commerce conducted on mobile phones and the use of BNPL, both preferred by the younger generation. Hence there is quite some headroom for growth, and while B2C BNPL is expected to grow steadily in Japan over the coming years, at higher single digits/low double digits, there are structural catalysts that will make B2B BNPL, even more nascent at this point, a more attractive market with higher growth rates going forward.

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