Visa at the forefront of Fintech

On several occasions we have exposed news about how different financial entities are making investments in Fintech statups; However, there are two that we mention frequently: MasterCard and Visa, the latter being the most advanced of the pair, making decisions that have generated greater benefit. This time we bring you another potential growth, being the alliance with a Japanese company known as Paidy.

Source

This company aims to revolutionize online shopping in Japanese territory, especially in the area of ​​technology; being the 4th largest market in the world and high use of credit cards in the world, except Japan.

The startup says that cash accounts for about 40 percent of the annual e-commerce spend of 16.5 trillion yen, because credit card payments are cumbersome, given that the Japanese put in other security checks that make the process more tedious

Paidy's response is simple, using the digital media that everyone has, being an account linked to the customer's phone number or email address, which is used as a payment option in the e-commerce boxes.

The payment itself requires the entry of a confirmation code, and that's it. In addition to simplicity, Paidy also offers several payment options to give users the functions of a credit card.

With Paidy operating as a virtual credit card system that competes with plastic cards, Visa has seen enough to justify its incorporation into the project, according to Chris Clark, regional president of Visa for Asia and the Pacific.

"We have followed the progress of Paidy and the enhanced shopping experience they provide at the time of purchase. In Japan there is a huge opportunity to offer consumers more payment options, either once or in installments, especially when they buy on multiple channels, "Clark said in a statement.

Paidy did not disclose how much Visa put into its business, which has raised more than $ 80 million to date, but did say it will work with the credit card giant to develop "new digital payment experiences" in Japan.

Paidy counts Itochu Corporation, Goldman Sachs, Eight Roads - the investment arm of Fidelity - SBI Holdings, FinTech LPS Business Innovation from OSE, Arbor Ventures and SIG Asia as existing investors.