Japanese startup Paidy, ExCo’s online payment service, announced a $15 million Series B funding round led by SBI Holdings and Eight Roads Ventures Japan on Thursday. Other investors include Itochu and two returning funders: SIG Asia and Arbor Ventures.
Paidy is trying to develop a non-credit card payment network for Japanese e-commerce, already reaching 600,000 stores online that allow shoppers to check out with merely a phone number. That includes clients like Adidas and Dean & Deluca, according to the company.
While fraud might be one motivation, Japanese consumers prefer cash in general. The same Accenture report points out only 60% of payments in Japan are done by card because the majority of purchases are made on a mobile device.
The company is the brainchild of Canadian investment banker Russell Cummer. Other investors in the company include 500 Startups, Juvo Capital, CyberAgent Ventures, Cherubic Ventures and Recruit Strategic Partners.