PayPal is unveiling “Pay in 4,” a short-term installment payment plan for customers in the U.S.
Pay in 4, which is part of PayPal's suite of Pay Later credit solutions, will enable retailers to get paid upfront while customers pay for purchases between $30 and $600 in four installments over a six-week period. Retailers won't pay any additional fees to enable it for their customers, while consumers will pay no fees or interest for on-time payments, which are seamless with automatic re-payments.
Retailers including Aldo Group and e-commerce platforms including BigCommerce will be among the early adopters of Pay in 4.
Digital payment platforms Klarna and Afterpay offer similar solutions that let customers divide payments into four installments, with no fees or interest for on-time payments. However, unlike Pay in 4, both of those services charge fees to retailers to use their installment payment offerings.
Customers will also see Pay in 4 in their PayPal wallet, so they can manage their payments in the PayPal app. Retailers will be able to add dynamic messaging to deliver relevant, in-context pay later options 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, senior VP, 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."
"While shopping online, our customers care about flexibility, control and seamless experiences,” said Gregoire Baret, senior director, omnichannel experience, Aldo Group. “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."
Pay in 4 will be available to consumers on qualifying purchases in early Q4 2020.