- Paypal Holdings Inc (NASDAQ: PYPL) recently announced “Pay in 4,” which is a short-term installment offering for customers in the U.S.
Paypal Holdings Inc (NASDAQ: PYPL) recently announced “Pay in 4,” which is a short-term installment offering for customers in the U.S. The Pay in 4 program can help merchants drive conversion, revenue, and customer loyalty without having to take on 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. And Pay in 4 is included in the merchant’s existing PayPal pricing so merchants do not have to pay any additional fees to enable it for their customers. Consumers pay no fees or interest and payments are seamless with automatic re-payments. Plus Pay in 4 will also appear in the customer’s PayPal wallet so they can manage their payments in the PayPal app.
PayPal – which is used by over 80% 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% 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 promote PayPal Credit on their site saw a 21% increase in sales compared to those who did not and merchants with pay over time messaging on their site saw a 56% increase in overall PayPal average order values. And 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.
PayPal enables 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. And consumers are 54% more willing to buy when a business accepts PayPal, and 25% of people have abandoned a transaction because their preferred payments provider wasn’t available. With a two-sided platform of 346 million global active merchant and consumer accounts, PayPal can help connect merchants with new customers.
Along with Pay in 4, PayPal offers several other financing options. And PayPal Credit — a reusable line of credit with various promotional offers built in like 6 months special financing and Easy Payments, available in the U.S. and U.K. — is the most commonly used buy now pay later service. PayPal also offers PayPal Ratenzahlung and Paiement en 4X — installment products in the German and French markets and Pay After Delivery, a buy now, pay later offering in Australia, Canada, France, Germany, Spain, the Netherlands and UK.
Merchants and partners like Aldo Group, Blinds.com, BigCommerce, Swappa, and WooCommerce have seen success driving conversions and attracting new customers by making PayPal’s flexible financing options available.
Pay in 4 is going to available to consumers on qualifying purchases in early Q4 2020.
KEY QUOTES:
“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.”
— Doug Bland, SVP, Global Credit at 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.”
– Gregoire Baret, Senior Director, Omnichannel Experience, Aldo Group
“PayPal Credit has allowed us to make our products more accessible by enabling our customers to get the perfect look for their home today and pay over time – which is not only a win for our customers, but also our business. Through our co-marketing efforts, we’ve been able to tap into PayPal Credit’s millions of loyal subscribers to profitably grow our business while simultaneously increasing average order values.”
– Samantha Quagliano, Vice President of Marketing, Blinds.com
