PayPal, a United States online payment company said in a statement on Tuesday that it is set to buy the Japanese online credit specialist Paidy for $2.7 billion.
Paidy, allows online merchants to offer payment on credit and in installments to their customers.
According to the statement, the Japanese firm has put 300 billion yen ($2.7 billion) mainly in cash on the table for the buyout.
Subject to the necessary regulatory approvals, the transaction is expected to be finalized by the two groups in the fourth quarter of 2021.
Paidy will retain its brand after the takeover and continue to operate under its name.
Paypal had already raised around $400 million from investors, including PayPal Ventures and Goldman Sachs and has more than 4.3 million active accounts in Japan, where it has been operating since 2010.
Paypal Ventures is the private equity arm of Paypal.
The two companies had already entered into a partnership in April that allowed Paidy users in Japan to make purchases on credit from all e-merchants that used PayPal as a payment service around the world.
Amazon had also earlier announced a similar partnership with Affirm Holdings, which allows clients to spread out payments on purchases greater than $50 dollars.