Online payment provider PayPal has announced they will begin offering a buy now, pay later service for Australian’s starting in June.
The Buy Now, Pay Later (BNPL) option will be available to all 9 million PayPal Australia customers, giving them the option to pay off purchases up to $1,500 in four interest-free installments.
PayPal will begin offering BNPL at the check out as part of a PayPal purchase, lessening the barriers to taking up the offer. The BNPL offering will move PayPal back in line with the likes of AfterPay and ZipPay who offer similar services and have gained massive popularity since their introduction.
While the offer is interest free, there will of course be late fees for missed payments – $10 for purchases up to $125, and up to three $10 payments (Capped at $30) for purchases over $125.
PayPal will continue to offer Buyer Protection on eligible purchases giving you peace of mind that PayPal can refund the full purchase price, including delivery if things go awry. By the same token, Businesses will also be covered by PayPal’s Seller Protection for eligible transactions.
Andrew Toon, General Manager, Payments, PayPal Australia said:
Australian consumers are looking for more choice and flexibility and PayPal Pay in 4 gives them yet another way to purchase securely using PayPal. PayPal’s digital wallet is the only solution that provides multiple ways to pay all in the one place – instantly with debit or credit card; 21 days later with our Pay After Delivery option; and now in four interest-free instalments using PayPal Pay in 4.
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.
Businesses offering PayPal checkout online will have their customers automatically be able to use the BNPL option in their PayPal wallet at point of sale, making it an extremely easy option to offer customers. Businesses can choose to update their PayPal branding to advertise the BNPL option if they wish.
The Buy Now, Pay Later option will arrive in PayPal wallet from ‘early June 2021’, so keep an eye out for it. If you want to learn more, you can check it out on the PayPal website.