Japanese payments firm Paidy has seured $55 million in a Series C funding round, led by ITOCHU Corporation, with participation from Goldman Sachs.

Paidy provides an instant post-pay credit service for e-commerce customers in Japan. No pre-registration or credit card is required to use Paidy; customers simply purchase products online using a mobile phone number and email address, settling a single monthly bill via bank transfer, auto credit or at a convenience store.

Its proprietary models and machine learning mean that transactions are underwritten in seconds, with guaranteed payment to merchants. Paidy increases merchant revenues by reducing incomplete transactions, increasing conversion rates, boosting average order values, and facilitating easy repeat buying.

Paidy hopes the injection of funding will support launches with large merchants, expansion into the offline market, expansion of financial services available to customers and growth of its customer base to 11,000,000 accounts by 2020. There are currently 1,400,000 active customers.

Russell Cummer, founder and executive chairman of Paidy, said: “Through this tie-up, we expect to launch new merchants in order to deliver Paidy’s frictionless and intuitive financial solution to a much broader audience.

“Furthermore, by adding new payment functions and diverse financial services, thereby making our customer attachments much more robust, we aim to promote our vision of removing barriers and creating unique consumer experiences to as many people as possible.”

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