Expansion of 'Buy Now Pay Later' product suite
offers new flexible monthly payments with no late fees in the
U.S.
SAN
JOSE, Calif., June 15,
2022 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ:
PYPL) today announced PayPal Pay Monthly1, its newest
buy now, pay later offering, issued by WebBank, which gives U.S.
consumers the ability to spread payments out over longer periods of
time. With the addition of Pay Monthly, customers will have access
to a new offering through PayPal that gives them greater
flexibility and even more choices to pay for the items they want
and need.
A recent study found that 65% of Americans are saving for a big
purchase, and 79% are looking to create and maintain a
budget2, which has created a growing need for shoppers
to buy the items they want in manageable payments. Pay Monthly is a
new way for customers to make large purchases between $199-$10,000 and
lets them break the total cost into monthly payments over a
6–24-month period, with the first payment due one month after
purchase. Once a customer selects Pay Monthly, they will complete
an application at checkout and, if approved, will be presented with
up to three different plans of varying lengths with risk-based APR
ranging from 0%-29.99%. Customers can then compare and select the
option that best suits their budget.
"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," said Greg Lisiewski, Vice
President of Shopping and Pay Later at PayPal. "Pay Monthly builds
on our commitment to deliver leading payment solutions that offer
customers choice to ensure checkout matches their needs and
budgeting preferences."
The pay later products through PayPal, including Pay Monthly and
PayPal Pay in 4, have no late fees and allow consumers to choose
their repayment method and select automatic payments up front when
completing their transaction. With Pay Monthly, customers can
select between using their debit card or bank account for repayment
and seamlessly manage and track payments through the PayPal app and
online. Plus, consumers have the peace-of-mind that comes with
knowing their purchases are backed by PayPal Purchase Protection.
Customers will have the option to select Pay Monthly for their
shopping needs at millions of retailers including brands like
Outdoorsy, Samsonite, Fossil, and Advance Auto in time for their
summer purchases and activities
Since 2004, PayPal has partnered with banks to provide industry
leading credit products, allowing millions of consumers the ability
to spread out payments over time. Pay Monthly continues a tradition
of transparent point-of-sale lending products and leverages over a
decade of experience working with bank partners who underwrite
loans to improve the checkout experience and best match loan
approvals with customer purchases through various macroeconomic
conditions.
Pay Monthly will be automatically available for merchants at no
additional cost or risk and requires no complex back-office
integration to add as a payment option. Similar to Pay in 4,
merchants can also add dynamic messaging to deliver relevant Pay
Later options that are presented early in the customer's shopping
journey to let them know they will have the option to spread out
payments at checkout.
- Pay Monthly is subject to credit approval. The APR is 0 -
29.99% based on consumer credit eligibility. Terms and availability
may vary based on the merchant and purchase amount and may not be
available in all states. PayPal, Inc.: RI Loan Broker Licensee. The
lender for Pay Monthly is WebBank.
- Morning Consult State of Banking Q1 2022 (2200 US Adults)
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 429 million
consumers and merchants in more than 200 markets to join and thrive
in the global economy. For more information, visit paypal.com.
Media Relations Contact
Gideon Anstey
Gbanstey@paypal.com
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SOURCE PayPal Holdings, Inc.