PayPay acquires Credit Engine

PayPay Corporation is acquiring Credit Engine Group, a provider of online loan management systems, effective November 1st, making Credit Engine a wholly owned subsidiary of PayPay. Financial details of the deal remain undisclosed. Earlier this year, Credit Engine Group completed its Series B funding round, with total funding reaching approximately JPY 2.2bn, including debt financing.

In October 2023, Mitsubishi HC Capital and Credit Engine entered into a capital and business alliance agreement in order to build and provide new services aimed at transforming the value chain in the leasing industry. The two companies had deepened their relationship since jointly developing MileOn, a service that was launched in June 2021 and allows corporations and individual business owners to enter into lease contracts related to capital investments online.

Initially, Credit Engine Group launched “LENDY,” offering short-term bridge capital and working capital solutions to small and medium-sized enterprises and sole proprietors, though this service was discontinued in January 2024. The company’s current primary offerings include “CE Loan,” an online loan management platform for financial institutions and businesses, and “CE Collection,” a digital debt management and collection system serving financial institutions, businesses, and law firms.

While specific acquisition terms and the future direction of existing services remain unknown, industry observers suggest several potential synergies between the companies. These could include streamlining loan screening processes for PayPay Bank’s various lending and installment payment services, enhancing bad debt risk management, developing Buy Now Pay Later (BNPL) services, and expanding offerings for small and medium-sized enterprises.

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