PayPal “Pay Monthly” Joins Crowded BNPL Market
(17 June 2022 – United States) PayPal is releasing a new buy now pay later (BNPL) product called “Pay Monthly” fresh on the heels of its existing “Pay in 4” instalment offering.
PayPal Pay Monthly is designed to give customers a more flexible way to pay according to the United States (US) payments major. As opposed to paying off purchases over a six week period, “Pay Monthly” users can break down the total cost into monthly payments over a six to two year timeframe.
PayPal’s existing “Pay in 4” program allows customers to pay for purchases between US$30 and US$1,500 while the new program allows consumers to make purchases between US$199 and US$10,000 with the first payment due one month after the purchase is made. Customers will then make monthly payments until the purchase price and interest are fully repaid.
A Citizens Advice survey found 42 percent of BNPL customers borrowed money to cover late payments toward those loans as the BNPL market continues its stratospheric growth while remaining largely unregulated.
“How consumers look to pay for larger purchases is evolving and there is a growing demand for flexible payment options with 22 million PayPal customers using our pay later offering this past year. Pay Monthly builds on our commitment to deliver leading payment solutions that offer customers choice to ensure checkout matches their needs and budgeting preferences” commented PayPal Global Pay Later Products VP, Greg Lisiewski.