The fintech unicorn is reportedly expected to file an IPO in Tokyo this year, though no specific timeline has been provided. Credit: Free stock photos from www.rupixen.com from Pixabay

Japan-based buy now, pay later (BNPL) service provider Paidy is reportedly looking to go public.

The fintech unicorn is expected to file an IPO in Tokyo this year, according to Financial Times, though no specific timeline has been provided.

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“We have access to capital. In our business, it’s also important to have access to credit lines, which we do, but at the same time, every company does mature and get to the point where it also makes sense to be a public company,” Paidy founder Russell Cummer told the publication.

Paidy was founded in 2008 by Cummer, who previously had a stint at Goldman Sachs’ trading desk.

Last year in October, the firm launched 3-Pay, enabling users of its Paidy Plus service to split their purchases into three installments. The service, which comes at zero interest, is said to be a first in Japan.

Paidy has around six million users, around half of whom are women aged between 18 and 34 years, stated the report.

However, the report also highlighted that in Japan, the growth of BNPL space has been relatively slower compared to other countries where its popularity has soared due to the increase in online shopping triggered by the pandemic.

Globally, the BNPL sector is a booming space larna, Silicon Valley-based Affirm and PayPal.

“It’s still early days for us in this market. But for the very first time, Japan has a true BNPL service,” Cummer was quoted as saying.

Japan’s population is heavily dependent on cash.

In the country, the volume of transactions done through post-payment services was JPY882bn ($8bn) in fiscal 2020. According to the Yano Research Institute, this figure can surge to JPY1.88tn by fiscal 2024.

Earlier this year, Paidy raised $120m in a series D financing round from Capital Management, Soros Capital Management, Tybourne Capital Management, and Wellington Management.