SAN JOSE, Calif., Aug. 31, 2020 /PRNewswire/ -- PayPal
Holdings, Inc. (NASDAQ: PYPL) today announced "Pay in
4," a short-term installment offering for customers in the
U.S. Pay in 4 can help merchants drive conversion,
revenue and customer loyalty without taking 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. Pay in 4 is included in the merchant's existing PayPal
pricing, so merchants don't pay any additional
fees to enable it for their customers. Consumers pay
no fees1 or interest, and payments
are seamless with automatic re-payments. Pay in 4 will
also appear in the customer's PayPal wallet, so they can manage
their payments in the PayPal app.
The PayPal platform – used
by over 80 percent 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
percent higher2 on average than a checkout
without PayPal, and PayPal's Pay Later products are helping connect
merchants with new customers every day. Businesses that
promoted PayPal Credit on their site saw a 21 percent
increase3 in sales versus those who did not, and
merchants with pay over time messaging on their site saw
a 56 percent increase4 in overall PayPal average
order values. 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.
"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, SVP, 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."
PayPal is focused on enabling 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. Consumers
are 54 percent more willing to buy when a business
accepts PayPal, and 25 percent of people have
abandoned a transaction because their preferred payments
provider wasn't available. In addition, 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. 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 including 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.
"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.
Pay in 4 will be available to consumers on qualifying
purchases in early Q4 2020. Merchants and
partners can learn more about Pay in 4 and pre-register
to get first access here.
About PayPal
PayPal has remained at the forefront of the digital payment
revolution for more than 20 years. By leveraging technology to make
financial services and commerce more convenient, affordable, and
secure, the PayPal platform is empowering more than 300 million
consumer and merchant accounts in more than 200 markets
to join and thrive in the global economy. For more information,
visit paypal.com.
1. Consumers pay no interest and
no origination fees. A late fee may be applied if the
payment isn't received on time.
2. Checkout conversion is measured from the point when a
consumer selects a payment type to completion of purchase within
the same browsing session.
3. Average annual incremental sales based on PayPal's analysis
of internal data among 210 small and middle market merchants
with annual online sales up to $37M with messaging and buttons
against a broader group of merchants that did not, with 24
months of continuous DCC volume between January 2016 and November 2019.
4. Average lift in overall PayPal AOV for merchants with
PayPal Credit messaging versus those without, 2019 PayPal internal
data.
CONTACT: Grace Nasri,
gnasri@paypal.com
View original
content:http://www.prnewswire.com/news-releases/paypal-introduces-new-interest-free-buy-now-pay-later-installment-solution-301120648.html
SOURCE PayPal Holdings, Inc.