PayPal watches BNPL service soar 400% over Black Friday

PayPal saw the use of its buy now, pay later (BNPL) service soar over Black Friday weekend, according to the company’s chief executive Dan Schulman.

Schulman told CNBC that the volume of sales on the payment provider’s ‘Pay in four’ service leapt by 400 per cent year-on-year.

“We did some 750,000 transactions alone in one day on Black Friday,” Schulman told CNBC, describing its payment instalment service as “one of the stars” of the holiday season.

PayPal introduced the pay in four capability in its US market last year, which allows consumers to spread the cost of a payment in four, interest-free instalments.

READ MORE: Amazon & PayPal to enable Venmo checkout option next year

BNPL spending was up 422 per cent across the board in November, according to data from Adobe Analytics.

The he volume of orders was also up 438 per cent on these platforms from 2019 levels.

One of the space’s giants Klarna, saw users spend 298 per cent more on its BNPL services this Black Friday compared with last year.

Experts believe that the 30-year high levels of inflation are prompting consumers to pick BNPL options at checkout.

There are concerns however that it could lead to financial risk, with a number of consumer groups calling for laws to curb the trend.

BNPL schemes are typically easier to access than other forms of credit due to the lack of hard credit checks involved when issuing credit.

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