Japan has always been and still is a heavily cash-oriented country. Even though the credit cards and online banking are widespread, people are not eager to use such services. Traditionally, Japan pays a lot of attention to the protection of personal data, and many cardholders are not willing to enter their personal contact information, bank account numbers and other data.
Since online shopping in Japan is as popular as in many other countries, the question arises: how do you shop online without feeding your banking details to online platforms and websites? Paidly found the solution by launching a post-payment credit system that allows its users to shop online without a credit card.
How does it work?
In 2014, Paidly gave a new life to a popular payment model used by postal services – payment on delivery: purchased items and products can be paid by cash at the pick-up points or to the delivering courier after receiving the package. Paidly took this concept further and eliminated the need to pay for each and every purchase separately. The system enables its users to make a single payment for a bunch of items bought separately at different times.
The core idea of such online shopping is that at the end of each month a user will get a consolidated bill that includes invoices for all the purchases made through Paidly. Then this bill can be paid in cash at the convenience store or through the bank transaction. All that a user needs to provide is a telephone number and an e-mail address. Paidly will send a four-digit verification code via a text message or a voice mail making checkouts fast and easy.
Such online shopping method protects users’ data and makes shopping easier and quicker. Moreover, it ensures that payments to the companies are secure by underwriting transaction within mere seconds thanks to Paidly’s proprietary models and machine learning. This feature increases conversion rates since people are less likely to abandon their shopping carts in the process of checking out.
Currently, Paidly has 1.4 million accounts but it aims to reach 11 million users by 2020.
Future perspectives of renewed online shopping
Paidly and its approach have already caught the attention of the Japanese trade conglomerate ITOCHU Corporation. Together with Goldman Sach ITOCHU has invested $55 million in Series C, bringing the total investments in the company to $80 million after Series A and B. According to the executive chairman of Paidly, these acquisitions will be used to expand its audience and bring safe and comfortable online shopping to as many people as possible.
Currently, Paidly has 1.4 million accounts but it aims to reach 11 million users by 2020. In order to achieve the goal, the company plans to introduce a wider range of financial services and payment methods as well as launch new merchants and entering the offline market. Such measures are supposed to remove barriers and improve customers’ experience.
Do you think Paidly may significantly impact or change the traditional ways of online shopping? We would love to hear your ideas and thoughts as well as to learn about your experience with online shopping and Paidly in particular in the comment section below.