Japanese company Exchange Corporation offers a new way for consumers to pay at online stores that does not require a credit card or pre-registration.

Exchange Corporation has launched Paidy, a cardless e-commerce payment and instant credit service. The launch came after it has raised US$3.3 million through a Series A funding led by Arbor Ventures together with CyberAgent Ventures and Recruit Strategic Partners. Existing investors, 500 Startups and Cherubic Ventures, also participated.

Optimised for mobile and instant-checkout, Paidy allows consumers to buy online quickly and safely using only their name and email address. Consumers have the flexibility to pay at one time or spread payments over installments.

Using proprietary models and machine learning, Paidy is able to underwrite transactions in 30 seconds or less, allowing consumers to purchase quickly, while guaranteeing payment to merchants.

Paidy’s launch was spurred by demand for non-credit card payment solutions and the explosive growth of smartphone purchases in Japan. More than 40 per cent of Japanese smartphone users purchase products on their devices, while many category leading e-commerce merchants are now majority mobile in terms of sales.

Russell Cummer, co-founder and president, Exchange Corporation, said: “We expect this platform to significantly boost merchant conversions and order values while giving shoppers a better checkout experience.”