COVID-19 has sparked many consumer behavioral shifts, including the way shoppers are choosing to pay. While contactless payments have gained popularity for in-store purchases, buy-now-pay-later services are thriving on the eCommerce front.
PayPal has now become the latest player that is set to soon begin offering installment payments to its online shoppers. The company announced an extension to its suite of credit solutions, dubbed “Pay in 4,” which will offer an interest-free, buy now, pay later installment payment alternative to U.S. based customers through the PayPal wallet, allowing shoppers to pay in four installments with most retailers.
Retailers can opt-in on the new offering by visiting its product page and integrating the service at no additional cost.
“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,” said Doug Bland, senior vice president, global credit at PayPal. “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.”
This initiative aims to enable choice in how and when customers pay for their items and rides the coattails of the increase in buy-now-pay-later consumer adoption during the pandemic.
According to PayPal insights, consumers are 54 percent more willing to buy from a business where PayPal is accepted, especially in unfamiliar situations. PayPal also reveals that 25 percent of people have abandoned a transaction simply for the fact that their preferred payments provider was not available.
PayPal currently has a network that includes over 346 million global active merchant and consumer accounts and has an 88.7 percent conversion rate, which is 82 percent higher than checkouts without PayPal.
“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.
With the Pay in 4 solution, customers can pay for their purchases in over six weeks while retailers are paid in full right upon the completion of the transaction.
Pay in 4 will be available to consumers beginning in early Q4 of this year.