Global payment tech firm Visa, has made a strategic investment in Japan’s post-pay credit service provider, Paidy, joining the Series C round of investment of the fintech startup, according to an announcement.
The financing from Visa will add to Paidy’s $55 million Series C round announced in July, led by Itochu Corporation, a Japanese conglomerate with participation from Goldman Sachs.
In Japan where credit card usage is low compared to the number of cards people have in hand, Paidy has taken the advantage of the situation by allowing users to shop online without using a credit card.
People can buy online without creating an account or using a credit card. Instead they can use a mobile phone number and email to settle the bill once a month to the merchant that uses Paidy.
The investment comes when Visa is looking at supporting new developments in the payments space, which is increasingly moving cashless.
“In Japan there is enormous opportunity to bring consumers more options to pay, whether all at once or in instalments, especially when shopping across multiple channels. We look forward to this partnership to deliver these kind of new experiences,” said Chris Clark, regional president, Asia Pacific, Visa.
Paidy, which claims to have 1.5 million users, raised $15 million in its Series B round.
Previous investments of Visa include Israeli firm Behalf that gives capital to SMEs, and Payworks, a German payment technology company.