October 16, 2026, 8:35 a.m. (JST)
[Japan] Paidy co-exhibited with PayPal at the “Tokyo Game Show 2026,” held at Makuhari Messe from September 17 to September 21, 2026.The gaming and digital content sectors have traditionally been a “blank spot” for “Buy Now, Pay Later” services because credit assessments are difficult to conduct without address information. Paidy has resolved this challenge and entered this market.Furthermore, amid significant changes to the payment landscape driven by the new smartphone law enacted last year, we spoke with Tomomasa Hashimoto, Executive Vice President of Paidy, about the future outlook for payments in the gaming sector.
Offered
for games and digital content since 2018 Adoption in the gaming industry is also on the rise
Paidy is a deferred payment service that allows users to purchase what they want immediately using only their smartphones and pay “all at once later.” In addition to a lump-sum payment due by the 27th of the following month, it offers “3-, 6-, and 12-installment deferred payment” plans with no installment fees. The Paidy app has been downloaded over 25 million times.
While Paidy’s deferred payment service was originally focused on physical goods, the company developed a digital product in 2018 that allows users to make purchases even without a shipping address. In the gaming and digital content sectors, there is a demand for real-time in-game purchases. Users who do not have a credit card or are not registered must use prepaid cards or top up their accounts at convenience stores.
Mr. Hashimoto explains, “It’s difficult to redirect users to a registration page while they’re in the middle of playing a game, but Paidy handles this smoothly with just an email address and phone number. No pre-registration is required—as long as users have registered their ID and password via a token, they can make payments immediately.” He notes that adoption is growing in the gaming industry among companies such as MIXI, the Nintendo Store, DMM.com, and the GEO Online Store.
Risk Model Established
Judgments Based on a Wide Range of Information
“I feel that there are more and more places where Paidy can be effective. Since we’ve been offering the service for games since 2018, we’ve established a robust risk model. Whether it’s games or merchandise sales, we can assess risk based on a wide range of information, which has led to a significant reduction in non-payments,” says Mr. Hashimoto.Data is said to be the key to the service. It’s notable that users are utilizing Paidy across multiple Merchant categories, such as retail and gaming.
Although the Payment Processing Fee rate is not disclosed, adoption by game companies is increasing, and the service has reportedly managed to differentiate itself among payment methods. A particularly distinctive feature is its support for installment payments via BNPL. Game companies can offer installment plans of up to three payments, and upon request, this can be extended to up to 12 payments.By signing up for “Paidy Plus,” users can access 3-, 6-, or 12-installment payment plans; however, the number of installments available varies depending on the game.
What are the trends among game users?
With a focus on service and feature enhancements
The repeat usage rate among gaming users is reportedly high. While the initial cost per session for games and digital content is low—typically 100 or 200 yen—users often go on to purchase in-game items or continue playing, making this a highly compatible model for raising awareness of Paidy. Furthermore, although it was initially assumed that installment plans would be rarely used due to the low unit prices of games, a noticeable number of users are actually taking advantage of them.Mr. Hashimoto explains, “Game companies offer campaigns and incentives to their core users. For example, when users might be able to obtain a more powerful item after spending 3,000 yen, we see them using Paidy’s three Installment Payments to pay 1,000 yen in three installments.”
The number of merchants accepting Paidy is growing daily, with users averaging about 2.5 to 3 merchants per transaction. Game users notably make purchases via mobile devices, mobile carriers, game customization sites, and electronics retailers.
Furthermore, regarding in-app purchases, the company gets the impression that users and game companies are selectively choosing which options to use. They also hope that Paidy will be offered as a payment method by providers of in-app purchases. For example, while the payment processing company SP.LINKS allows for the implementation of Paidy, the company reports an increase in connections coming through its referrals.Furthermore, the company has established standard integration with Xsolla, a video game commerce platform, to make it easier for online game operators to use.
At the Tokyo Game Show 2026, Paidy shared a booth with PayPal, and the two companies plan to further strengthen their collaborative efforts moving forward. Discussions began in July on how to leverage PayPal’s global payment expertise and strengths in operating BNPL businesses across various countries to benefit Paidy’s business in Japan.
Paidy’s payment experience—including its buy-now-pay-later (BNPL) Installment Payments—has gained popularity among gamers. While the service was initially used primarily by younger generations, offering Installment Payments has led to a noticeable increase in usage across a broader user base.
Mr. Hashimoto expressed his enthusiasm, stating, “We have strengths such as the early launch of digital content products and support for installment payments, but since other companies are following suit, we intend to explore measures such as increasing the number of installments and expanding features.”
