Fintech & Money: Paidy

Summary

Russell Comer, CEO and co-founder of Paytie, introduces Paytie as a revolutionary instant postpay credit service in Japan, designed for quick and secure online shopping. Paytie offers a frictionless checkout experience using just a mobile phone number, eliminating the need for credit card details and sign-ups. It provides a seamless monthly billing system, installment repayments, and caters to over a hundred million consumers across all carriers. Comer highlights Paytie's significant impact on increasing merchant revenue, customer acquisition, and average order value, positioning it as a game-changer in the Japanese e-commerce landscape. With the recent Series C funding of $55 million, Paytie is set to expand regionally, aiming to make financial services instant and accessible.

Takeaways

• 😀 Paytie is an instant postpay credit service in Japan, offering a mobile, fast, and secure way to shop online.
• 🔐 Paytie provides an instantly issued postpay credit account linked to a mobile phone number, eliminating the need for credit cards or signups.
• 📈 Despite Japanese consumers having an average of 3.2 cards per person, nearly half of online sales are completed with cash payment methods.
• 🛒 Paytie aims to create a consumer experience as easy as cash on delivery at checkout but as powerful as a credit card afterward.
• 🏡 Paytie addresses the issue of cash on delivery by offering a service where consumers don't need to be home for transactions, unlike traditional COD.
• 💼 Paytie has shown to increase revenue for merchants by reducing transaction breakage and attracting new customers.
• 💳 Paytie offers a single monthly bill for all shopping, with the option to pay in installments, providing convenience similar to a credit card.
• 💼 Paytie is beneficial for merchants as it eliminates significant bottlenecks and assumes all payment risks, guaranteeing payments 100%.
• 🌐 Paytie is expanding its services beyond online to offline payments and is looking at regional expansion opportunities.
• 💼 Paytie has recently closed a Series C funding round, raising $55 million USD to continue its growth in Japan and potentially expand regionally.

Q & A

What is Paytie and how does it function?

Paytie is an instant postpay credit service in Japan that allows consumers to shop online quickly and securely. It offers an instantly issued postpay credit account linked to a mobile phone number, without the need for a credit card or carrier billing. Paytie is designed for easy checkout and is available to over a hundred million consumers in Japan, working on all carriers including MVNOs.

What makes Paytie unique in the Japanese market?

Paytie is unique because it combines the convenience of cash on delivery at checkout with the power of a credit card for all subsequent uses. It requires no signup, no credit card number, and offers a single monthly bill for all shopping, installment credit, and works for subscriptions and recurring billing.

Why did Paytie launch in Japan, and what is the economic context?

Paytie launched in Japan because despite Japanese consumers having an average of 3.2 cards per person, nearly half of online sales are completed with cash payment methods. This is due to cultural reasons and the inconvenience of cash on delivery, which requires consumers to be home for transactions.

How does Paytie address the issues with cash on delivery?

Paytie addresses the issues with cash on delivery by providing a frictionless checkout experience that requires no signup or credit card information. It also eliminates the need for consumers to be home for transactions, as payments are managed through a single monthly bill.

What benefits does Paytie offer to merchants?

Paytie offers merchants a significant increase in revenue, no transaction breakage, and the assumption of all payment risks. It also simplifies the refund process and can increase the average order value by providing consumers with access to additional credit.

How does Paytie enhance the consumer experience?

Paytie enhances the consumer experience by offering a frictionless checkout process, no credit information risk, and card-like convenience with a single monthly bill. It also allows for installment payments, which can be seen as an intelligent way to budget for purchases.

What is the significance of Paytie's paperless billing system?

Paytie's paperless billing system issues monthly consolidated bills via SMS and email, which can be paid at convenience stores, through bank transfer, or by linking a bank account for auto-debit. This system is environmentally friendly and provides convenience to consumers.

How does Paytie plan to expand its services beyond online payments?

Paytie plans to extend its services to include payment in the real world and other repayment options like installments. It also sees opportunities to service consumers with additional products such as insurance, working capital, and risk and fraud solutions.

What recent funding round has Paytie completed, and what are the implications?

Paytie has recently closed a Series C funding round, raising 55 million US dollars. This funding, led by a large trading conglomerate in Japan and including Goldman Sachs as a new investor, brings the total funding to date to 80 million US dollars. It implies that Paytie is preparing for significant growth and potential regional expansion.

What is the broader philosophy behind Paytie's approach to FinTech?

The broader philosophy behind Paytie's approach to FinTech is to create new consumer experiences by combining existing financial system ingredients in unique ways. It focuses on removing friction points and barriers to facilitate instant access and utility for consumers across various financial services.