Paypal launches Pay in 4, a new interest-free Buy Now Pay Later installment solution

By Pavithra R

PayPal has announced the introduction of “Pay in 4,” a short-term installment offering for customers in the U.S. Pay in 4 will be available to consumers on qualifying purchases in early Q4 2020.

Pay in 4 helps merchants drive conversion, revenue, and customer loyalty without taking any additional risk or paying any extra fees while enabling consumers to make a purchase and pay over four, interest-free installments. Pay in 4, part of PayPal’s suite of Pay Later solutions, enables merchants and partners to get paid upfront while allowing customers to pay for purchases between $30 and $600 over six-week period.

Pay in 4 is included in the merchant’s existing PayPal pricing, removing merchants’ needs to pay additional fees to enable it for their customers. Consumers need to pay no fees or interest, and payments are seamless with automatic re-payments. The functionality is also available in the customer’s PayPal wallet so that they can manage their payments in the PayPal app. 

“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. 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,” said Doug Bland, SVP, Global Credit at PayPal.

PayPal is focused on providing choice in how and when customers can pay, including credit and debit cards, PayPal, Venmo, rewards points, PayPal Credit, alternative payment methods, and other flexible financing options. 

Along with Pay in 4, PayPal offers several other financing options. PayPal Credit, commonly used buy now pay later service is a reusable line of credit with various promotional offers built-in like six months special financing and Easy Payments, available in the U.S. and U.K. The firm also offers PayPal Ratenzahlung and Paiement en 4X installment products in the German and French markets and Pay After Delivery, a buy now, pay later (BNPL) offering in Australia, Canada, France, Germany, Spain, the Netherlands, and the UK. 

Merchants and partners, including Blinds.com, BigCommerce, Swappa, Aldo Group, and WooCommerce, have seen success driving conversions and attracting new customers by making PayPal’s flexible financing options available.

“While shopping online, our customers care about flexibility, control and seamless experiences. Pay in 4 is built with these customer needs in mind, and it leverages the trust our consumers already have in the PayPal brand. We are excited to continue learning about the tools and technology that help our customers, especially in the lead up to the holiday season,” said Gregoire Baret, Senior Director, Omnichannel Experience, Aldo Group.

Recently, PayPal unveiled QR Code touch-free payments in Canada.

Established since 1998, PayPal is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company has remained at the forefront of the digital payment revolution for more than 20 years.