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November 17, 2021

Smartpay launches ‘buy now pay later’ service in Japan

By Shalini mani

Smartpay has launched interest-free Buy Now Pay Later (BNPL) service for credit card users in Japan.

Free Report
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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

The firm aims to solve consumer payment issues and enhance merchant conversion rates in the country where e-commerce cart abandonment rate is said to be over 80%.

Smartpay’s fully automated instalment payment solution allows users to pay for their purchases in equal instalments over eight weeks. The service carries no sign-up fees, interest fees, settlement fees, or late charges.

According to the company, consumers will be able to checkout within ten seconds.

Smartpay co-founder Sam Ahmed commented: “Our team has been passionate about Japan and its e-commerce journey for many years. We are seeing more consumers enjoying purchasing online and we’d like to help connect these consumers to the merchants in a more efficient manner.”

As part of its expansion, Smartpay plans to offer a free e-commerce training for 10,000 Japanese merchants to help them drive onsite conversion.

Smartpay country manager Naoya Otsubo said: “Smartpay recognises the anxiety of merchants in Japan will cause some retailers to potentially invest in the wrong areas.

“We believe that we can help merchants increase online sales conversions and revenue by 10 to 20% without having to invest in costly advertising or infrastructure builds.”

Launched in June this year, Smartpay is backed SMBC Venture Capital and Global Founders Capital.

Apple Pay and Google Pay are also integrated into the Smartpay platform to benefit small and medium sized merchants.

In September this year, PayPal agreed to acquire Japanese BNPL services provider Paidy for nearly JPY300bn ($2.7bn).

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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