bnpl

Xsolla Deepens Japanese Market Penetration via Strategic Partnership with BNPL Giant Paidy

Norbert Gehrke

24 Jan 2026 — 3 min read

Global video game commerce platform Xsolla has moved to strengthen its transactional infrastructure in the Japanese market, announcing a strategic integration with Paidy, the country’s dominant Buy Now, Pay Later (BNPL) provider.

The partnership integrates Paidy directly into Xsolla Pay Station, allowing game developers to offer card-free checkout options to millions of Japanese consumers. This move is designed to reduce transaction friction and capitalize on the rapid shift toward alternative credit solutions in the region’s digital economy.

Market Context

The collaboration comes as Japan’s payments landscape undergoes significant diversification away from traditional credit cards. According to market data cited by Xsolla, Japan’s BNPL sector recorded an aggressive Compound Annual Growth Rate (CAGR) of 55.9% between 2021 and 2024. Analysts project this momentum will sustain a CAGR of 23.7% through 2030, driven by a consumer base increasingly favoring flexible, mobile-first financial tools.

Strategic Implications

By incorporating Paidy—which reports over 15 million downloads and a user base of more than 6 million active accounts—Xsolla aims to mitigate cart abandonment rates commonly associated with complex checkout flows. The integration allows users to consolidate gaming purchases into a single monthly bill or utilize installment plans without requiring immediate credit card authorization.

For developers utilizing Xsolla’s merchant-of-record services, this partnership opens a direct channel to a tech-savvy demographic that prioritizes local, trusted payment methods. The expected outcome is an increase in conversion rates and average revenue per user (ARPU) within the Japanese market.

Management Commentary

"In Japan’s rapidly evolving digital ecosystem, offering familiar and flexible payment options is essential," stated Chris Hewish, President of Xsolla. Hewish noted that the deal provides developers with a mechanism to meet local players "where they are," leveraging a seamless, mobile-optimized experience to drive engagement.

This expansion marks another step in Xsolla’s broader strategy to localize monetization tools for global developers, ensuring regulatory compliance and cultural alignment in high-value gaming markets.

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