Tokyo-based fintech startup Paidy – which allows users to shop online without using a credit card – has raised a $55 million Series C round led by ITOCHU Corporation with participation from Goldman Sachs, the company announced on July 12.
Prior to the latest financing round, Paidy raised a $15 million Series B two years ago, bringing the startup’s total external financing to $80 million.
The startup’s unique point is it allows users to buy online without creating an account or using credit cards. The transactions can be made through Paidy by entering the mobile phone and email for verification and settling the bills on a monthly basis.
“Through this tie-up, we expect to launch new merchants in order to deliver Paidy’s frictionless and intuitive financial solution to a much broader audience. Furthermore, by adding new payment functions and diverse financial services, thereby making our customer attachments much more robust, we aim to promote our vision of removing barriers and creating unique consumer experiences to as many people as possible,” said Russell Cummer, founder and executive Chairman of Paidy.
The company claims to have 1.4 million accounts in use, and aims to reach 11 million by 2020.