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It’s payday as PayPal joins forces with Japanese BNPL platform Paidy

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Digital wallet platform PayPal splashes their cash as they jump on the digital credit bandwagon in a bid to engage with more consumers.

PayPal and Paidy come together through new partnership

PayPal returns to the top spot in the buy-now-pay-later (BNPL) competition, after purchasing Japanese loan platform Paidy.

The $2.7 billion partnership follows in the steps of rival Square after they scored their multibillion dollar deal with Afterpay earlier this year.

It comes at a time where the BNPL business model has been largely successful with consumers turning to virtual credit as they spend big online.

The cash deal will close in the fourth quarter of this year, with PayPal anticipating big things to come from its Japanese audience, which has the third largest e-commerce market in the world.

PayPal says the move will complement the company’s existing cross-border e-commerce business in the Asian country.

“The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan.”

A word on Paidy

Paidy will enable users of Paypal’s virtual wallet system to purchase items online and pay off their loans monthly.

But unlike Afterpay, Paidy enables its Japanese users to pay off their digital purchases in-store through a consolidated bill at local convenience shops or via bank transfer.

The company’s technology also has the ability to score creditworthiness, underwrite transactions and guarantee payment to merchants, setting up a safe platform for online consumer purchases.

“There is no better home for Paidy to continue to grow and innovate than PayPal, which has been removing friction from online shopping for more than 20 years,” says Russell Cummer, founder and executive chairman of Paidy.

“Together with PayPal, we will be able to further achieve our mission of taking the hassle out of shopping.”

Despite the acquisition taking place, Paidy will continue to operate under its existing business while maintaining its brand and supporting its consumers.

Founded in 2010, the BNPL firm currently has 4.3 million active accounts.

Written by Rebecca Borg

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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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