SAN JOSE, Calif., Sept 2, 2020– PayPal announced “Pay in 4,” a short-term installment offering for customers in the U.S.
Pay in 4 can help merchants drive conversion, revenue, and customer loyalty without taking on additional risk or paying any additional fees while enabling consumers to make a purchase and pay over four, interest-free installments.
Pay in 4, which is part of PayPal’s growing suite of Pay Later solutions, enables merchants and partners to get paid upfront while enabling customers to pay for purchases between $30 and $600 over a six-week period.
Pay in 4 is included in the merchant’s existing PayPal pricing, so merchants don’t pay any additional fees to enable it for their customers. Consumers pay no fees or interest, and payments are seamless with automatic re-payments. Pay in 4 will also appear in the customer’s PayPal wallet, so they can manage their payments in the PayPal app.
The PayPal platform used by over 80 percent of 100 leading U.S. retailers surveyed enables merchants to access all their payment and commerce needs within one trusted platform while driving increased conversion.
PayPal Checkout converts 82 percent higher on average than a checkout without PayPal, and PayPal’s Pay Later products are helping connect merchants with new customers every day.
Businesses that promoted PayPal Credit on their site saw a 21 percent increase in sales versus those who did not, and merchants with pay over time messaging on their site saw a 56 percent increase in overall PayPal average order values. Merchants can now also add dynamic messaging to deliver relevant, in-context pay later options early in the shopping journey, from the homepage to product pages, to checkout.
“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,” said Doug Bland, SVP, Global Credit at PayPal. “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.”
PayPal is focused on enabling choice in how and when customers can pay, including via credit and debit cards, PayPal, Venmo, alternative payment methods, rewards points, PayPal Credit, and other flexible financing options.
Consumers are 54 percent more willing to buy when a business accepts PayPal, and 25 percent of people have abandoned a transaction because their preferred payments provider wasn’t available. In addition, with a two-sided platform of 346 million global active merchant and consumer accounts, PayPal can help connect merchants with new customers.
Pay in 4 will be available to consumers on qualifying purchases in early Q4 2020.