PayPal has launched its own “buy now, pay later” (BNPL) scheme in a major challenge to market leaders like Klarna and Afterpay.
‘Pay in 4’ will be freely available to all merchants who accept PayPal as a payments option, which covers a whopping 79 per cent of the top 100 online merchants.
It will allow shoppers to pay for purchases of between $30 and $600 by putting down just 25 per cent of the purchase value, then pay the rest in interest-free instalments across six weeks.
Pay in 4 will be included in the price merchants already pay to use PayPal, meaning unlike other BYPL schemes they won’t have to pay any extra to offer the service.
It will also allow customers to track and manage their payments via the PayPal wallet.
“In today’s challenging retail and economic environment, merchants are looking for trusted ways to help drive average order values and conversion, without taking on additional costs.
“At the same time, consumers are looking for more flexible and responsible ways to pay, especially online,” PayPal’s global credit senior vice president Doug Bland said.
“With Pay in 4, we’re building on our history as the originator in the buy now, pay later space, coupled with PayPal’s trust and ubiquity, to enable a responsible and flexible way for consumers to shop while providing merchants with a tool that helps drive sales, loyalty and customer choice.”