San Jose, California-based PayPal Holdings, Inc. has agreed to acquire Paidy.
Paidy is a Japan-based payment platform that specializes in two-option payment mediums, along with unique options to buy now and pay later.
Riku Sugie, president and CEO of Paidy, said in a press release that the merger was the beginning of an extraordinary merchant partnership.
"Paidy is just at the beginning of our journey and joining PayPal will accelerate our plans to expand beyond ecommerce and build unique services as the new shopping standard," Sugie said. "PayPal was a founding partner for Paidy Link and we look forward to working together to create even more value. Thank you to our community of merchants and users who helped us get to this important milestone."
PayPal purchased the company for approximately $2.7 billion.
"There is no better home for Paidy to continue to grow and innovate than PayPal, which has been removing friction from online shopping for more than 20 years," said Russell Cummer, founder and executive chairman of Paidy. "Japan has been a vibrant environment for our growth to date and we're honored to have our team's hard work and potential recognized by a global leader."
PayPal's abilities with Paidy will further develop the distribution and relevance in the domestic payments market for Japan, as the country is the third largest e-commerce market in the world.