Payments processing giant Paypal has launched Pay in 4, an interest-free short term instalment payment service for its customers in the United States.
As the name suggests, the ‘buy now, pay later‘ service will allow payments over four interest-free instalments. Monday’s announcement also detailed that the service will be applicable for payments between $30 to $600 over six weeks.
Paypal will pay the merchants and partners upfront for the customers using the instalment payment service and will not charge them any additional fees for implementing the service.
“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,” Doug Bland, SVP of global credit at PayPal, said in a statement.
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The company will gradually roll out the payments services in the early part of the final quarter of 2020.
‘Buy Now, Pay Later’ Services Are Making a Killing
Notably, the California-headquartered global payments company is offering other retail financing services, including PayPal Credit, and claims that merchants availing this service is seeing a 21 percent increase in their sales. That instalment payment service is currently available in the US and the UK.
In various other markets, PayPal is offering instalment payments services with different service brandings.
“While shopping online, our customers care about flexibility, control, and seamless experiences,” Gregoire Baret, senior director of omnichannel experience at Aldo Group, one of the PayPal partners, said. “Pay in 4 is built with these customer needs in mind, and it leverages the trust our consumers already have in the PayPal brand.”
Meanwhile, PayPal is also diving into cryptocurrencies as Finance Magnates earlier reported that the payments company is developing various digital currency products that are still behind the curtains.