PayPal has introduced an instalment-based payment option for US customers.
- Pay in 4 enables customers to purchase an item and pay in four interestfree instalments.
- Purchases between $30600 are eligible.
- The payments are made over six weeks.
What does this mean?
Buy now, pay later businesses such as Klarna and Afterpay have experienced huge growth in usage (though not necessarily profitability) recently. PayPal is developing a range of “pay later” solutions including the option to pay on delivery. The instalment-based option, it says, enables merchants to be paid upfront while encouraging customers to buy more and increasing loyalty.