Called “PayPal Pay in 4”, the product works by allowing a consumer to split their purchases into four equal, interest-free instalments.
Paypal is entering the buy-now-pay-later space in Australia, launching a product that will see it compete with boom services such as Afterpay and Zip.
Called "PayPal Pay in 4", the product works by allowing a consumer to split their purchases into four equal, interest-free instalments.
Automatic repayments are drawn every two weeks, and the service is only available for purchases valued between $50 and $1500.
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Late fees will only apply if a payment is missed. For purchases under $125 there is a $10 late payment fee charged once.
For purchases over $125 there is a $10 late payment fee per missed payment with a cap of $30 (3 x $10).
Andrew Toon, General Manager of payments at PayPal Australia, said the service will come at no cost to consumers.
"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," Mr Toon said.
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"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."
Paypal Pay in 4 will be offered to customers at checkout along with other payment methods and is expected to be rolled out in early June 2021 in time for End of Financial Year Sales.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
Source: 9News https://www.9news.com.au/national/paypal-to-offer-buy-now-pay-later-service-paypal-pay-in-4/6361fc48-b46f-493f-875e-87af0c82897b