In an effort to make it easier for its users to purchase items online, PayPal has launched a new short-term installment offering for customers in the US called Pay in 4.
As the name suggests, the service allows users to pay for purchases between $30 and $600 over a six-week period in four installments.
Pay in 4 (opens in new tab) allows merchants and partners to get paid upfront for any goods sold while providing customers with a new 'buy now, pay later' option. The service is also included in merchant's existing PayPal pricing, so they won't be required to pay any additional fees to enable Pay in 4 for their customers.
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Customers who do decide to make a purchase using the new service won't have to pay any fees or interest and making payments is also seamless thanks to automatic re-payments. Pay in 4 will also appear in a user's PayPal wallet, so they can manage their payments directly from the company's app.
Pay in 4
SVP of Global Credit at PayPal, Doug Bland explained in a press release (opens in new tab) how Pay in 4 can help drive orders for merchants without forcing them to take on any additional costs, saying:
"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."
Pay in 4 will be available to PayPal users on qualifying purchases beginning in early Q4 of this year and the service's launch date lines up nicely with the 2020 holiday season.
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Via TechCrunch (opens in new tab)