PayPal has announced the launch of PayPal Pay in 4 in Australia – a new buy now pay later (BNPL) payment solution which will give customers the ability to pay off items with four equal payments.
The news comes as other BNPL solutions like AfterPay are booming in Australia.
PayPal has more than 9 million active accounts in Australia and its entry into this space in June 2021 looks certain to shake up the market.
PayPal Pay in 4 will be not only suitable for customers but also favourable or businesses which can offer more payment flexibility to their customers.
When a customer pays with PayPal with the standard button it will appear as a checkout option.
Businesses can also present PayPal Pay in 4 as a clear payment option.
It will be available to hundreds of thousands of Australians and millions of global businesses wherever PayPal is accepted.
Then same security and protections already seen on PayPal will also apply to PayPal Pay in 4 transactions.
This buy now – pay later solution is interest free and will incur no additional cost to the customer when the payments are split into four parts.
Customers will be able to clearly see if PayPal Pay in 4 is available as an option and also be able to see the instalments amounts.
PayPal Pay in 4 allows customers to split eligible purchases between $50 and $1500 over four equal interest -free instalments with automatic repayments drawn down every two weeks.
“Australian consumers are looking for more choice and flexibility and PayPal Pay in 4 gives them yet another way to purchase securely using PayPal,” says Andrew Toon, General Manager, Payments, PayPal Australia.
“PayPal’s digital wallet is the only solution that provides multiple ways to pay all in the one place – instantly with debit or credit card; 21 days later with our Pay After Delivery option; and now in four interest-free instalments using PayPal Pay in 4.
“Our Australian business customers have been requesting buy now pay later functionality from us, and we’re excited that we can offer PayPal Pay in 4 to them at no additional cost.
“Shopping habits are changing at an unprecedented rate and during the pandemic we saw more than two million Australians start shopping online for the first time.
“We will continue to support Australian businesses of all sizes to adapt to rapidly changing consumer behaviours by evolving our service to meet their needs.”
No fees are charged when payments are made on time.
But late fees will be incurred if a customer can’t make their payments on time.