Paidy

Overview

Paidy is Japan's leading buy-now-pay-later (BNPL) payment service, acquired by PayPal in 2021 for approximately $2.7 billion USD. The platform allows Japanese consumers to make online and in-store purchases and pay later — via monthly convenience store payments, bank transfers, or installment plans — without requiring a credit card or pre-registration. Paidy's "3-click checkout" uses just a phone number and email address to complete a purchase, with Paidy handling its own risk assessment in real time.

When Paidy's scripts appear on e-commerce websites, they are embedding a payment option within the checkout flow specifically designed for the Japanese consumer market. The integration is functionally comparable to how Klarna, Afterpay, or PayPal appear as payment methods on Western e-commerce sites.

What This Script Does

Paidy's scripts (widget.paidy.com/paidy.js) embed BNPL payment functionality directly into Japanese e-commerce checkout flows:

Payment option rendering: The script displays Paidy as a selectable payment method during checkout, showing the merchant's accepted Paidy plan types (pay-in-3, pay-in-12, monthly payment) along with estimated monthly installment amounts. This widget loads from Paidy's CDN at widget.paidy.com.

Identity verification and risk assessment: When a customer selects Paidy, the checkout collects the customer's Japanese phone number and email address. Paidy performs a real-time proprietary risk assessment using these identifiers combined with its own behavioral and payment history data to approve or decline the transaction. This assessment happens server-side at Paidy's infrastructure.

Transaction authorization: The script handles the payment authorization handshake between the merchant's checkout, the customer's browser, and Paidy's payment infrastructure. Upon approval, Paidy issues an authorization token that the merchant uses to capture the payment.

Session state management: Cookies are set to maintain checkout session continuity through the multi-step authorization and confirmation flow. These are strictly functional session cookies scoped to the payment interaction.

Merchant SDK events: The Paidy.js library fires JavaScript events (e.g., on_success, on_close, on_error) that the merchant's checkout code listens to in order to advance the order flow upon payment completion.

Consent & Compliance

Paidy's payment scripts operate within a clear legal and compliance framework:

• APPI (Japan): Japan's Act on the Protection of Personal Information governs Paidy's data handling. As a payment service provider, Paidy has a clear contractual and regulatory basis for collecting and processing the personal information necessary for payment processing and credit assessment. Paidy maintains a published privacy policy in Japanese covering these processing activities.
• GDPR: While Paidy primarily serves Japan, GDPR applies if EU residents access Japanese e-commerce sites. Payment processing has a clear lawful basis under Article 6(1)(b) — performance of a contract — for the personal data collected during checkout.
• ePrivacy Directive: Session cookies set during a payment flow are strictly necessary for the payment service the customer has explicitly selected. These are exempt from prior consent requirements under Article 5(3) of the ePrivacy Directive.
• PCI-DSS: Paidy's payment infrastructure is PCI-DSS compliant. Card data (for Paidy's card-linked features) is handled through tokenization within Paidy's certified environment.

Should You Block This Without Consent?

Paidy's scripts serve a purely functional payment purpose — processing transactions that customers explicitly initiate by selecting Paidy as their payment method at checkout. The data collection is limited to what is strictly necessary for payment processing and real-time credit assessment. Blocking Paidy without consent would prevent customers from completing purchases using this payment method.

No.