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Paidy Introduces BNPL to Physical Retail with No Fees

In a groundbreaking move, Paidy, a frontrunner in Buy Now Pay Later (BNPL) services, is excited to announce the launch of its zero-commission installment payment option for in-store shopping. Historically focused on online transactions, Paidy now brings its innovative payment method to brick-and-mortar establishments, allowing customers the convenience of purchasing a wide range of products through flexible payment options.

To celebrate this expansion, Paidy is running a special campaign that offers a 10% cash back (up to 5,000 yen) on purchases made via Paidy at participating member stores. This initiative not only encourages customer participation but also offers new business partners two months of waived transaction fees, potentially saving up to 50,000 yen.

The Essence of BNPL and Customer-Centric Approach

At the core of Paidy's mission is its dedication to creating a world where individuals can confidently pursue their dreams. Their zero-fee installment plan embodied in this BNPL service is a testament to that aim—the goal being to provide psychological relief and financial flexibility to users.

From automotive services, digital devices, and fashion to furniture and even wellness services, customers can now enjoy the benefits of Paidy’s installment payment options across approximately 300 local shops. Initially pilot tested in early 2024, the demand and positive feedback from both customers and retail partners has driven this full-scale launch. Paidy aims to increase the current transaction volumes in face-to-face payments by 50 times by the end of 2028, further broadening the scope of their service.

Redefining Traditional Payment Methods

Traditionally, installment payments in person have typically involved high-value purchases, where customers had to navigate cumbersome paperwork, loan applications, or credit card installments. Many individuals view these traditional financing methods as daunting, primarily due to the associated interest rates—around 80% of prospective customers surveyed by Paidy expressed a desire to avoid high-interest installment plans altogether.

By integrating a zero-fee installment plan into physical retail transactions, Paidy challenges this outdated paradigm. Customers who previously hesitated to make significant purchases due to upfront costs can now do so more confidently, aligning their shopping behavior with their lifestyle and financial situation.

Innovative Solutions for Retailers

For business operators, incorporating Paidy’s service goes beyond just offering a payment method; it provides a powerful marketing tool that enhances customer engagement and boosts sales. Retailers can attract customers who might otherwise refrain from buying due to price concerns. With a quick approval process—completing in as little as 60 seconds via smartphone—Paidy ensures a seamless user experience, enhancing customer satisfaction.

Masataka Rinko, Vice President of Partner Alliance at Paidy, commented on the rollout: "Providing zero-fee installment payments in physical stores will significantly expand shopping possibilities for customers and foster more purposeful purchasing. We also take pride in offering our retail partners innovative solutions that add value beyond mere transaction processing. We are committed to facilitating a transformative approach to managing finances that aligns with our vision of being 'the next standard in shopping.'"

As Paidy continues to broaden the horizon for service provisions, it is focused on fulfilling its goal of building a realm where individuals are empowered to pursue their aspirations confidently. By actively listening to customer and business needs, Paidy endeavors to offer innovative solutions to meet the evolving landscape of shopping.

Check out their service introduction here and see a list of participating stores that include renowned brands across beauty, moving services, leisure, auto maintenance, and many others.

Significant Campaigns for Customers and New Business Partners

For customers, the cash back campaign runs from February 2 to March 31, 2026, providing them an opportunity to save while shopping at in-store participating partners. On the other hand, new retail partners also have the chance to enjoy zero-member fees for the first two months when they sign up during the same period. More details can be found on the respective campaign pages, ensuring that both consumers and retailers can benefit from this expanded service offering.

In summary, Paidy is set to revolutionize the way we think about payments in the retail sector, shaping a world where dreams can be pursued without the constraints imposed by traditional financing options.