PayPal Expands Pay Later Options With New ‘Pay Monthly’ Service
Last week, PayPal introduced a new buy now, pay later (BNPL) product, called “PayPal Pay Monthly,” to give customers another flexible payment option for major purchases. Customers can use the program to pay off purchases over a six- to 24-month period rather than paying them off within six weeks.
“How consumers look to pay for larger purchases is evolving and there is a growing demand for flexible payment options,” said Greg Lisiewski, vice president of Global Pay Later Products at PayPal, in the company’s press release. “Pay Monthly builds on our commitment to deliver leading payment solutions that offer customers choice to ensure checkout matches their needs and budgeting preferences.”
Pay Monthly is valid for purchases between $199 and $10,000. Engadget noted that consumers will have to complete an application and when approved, can select from three different payment options with different time frames. APR will be between zero and 29.99 percent, and will be calculated on a risk basis.
Users can set up automatic payments from their debit card or bank account, or they can manage payments through the company’s website and app. There are no late fees with Pay Monthly, like with PayPal’s other BNPL options.
A recent Morning Consult study found that 65 percent of Americans were currently saving for a large purchase, and 79 percent were planning to create and manage a budget. PayPal has already established itself in the BNPL market with “Pay in 4” in August 2020, and has offered other solutions like Easy Payments and PayPal Credit’s revolving credit line.
Pay Monthly will automatically be available for merchants at no additional cost, and does not need complex integration to become a payment option. It is currently available to PayPal customers, and will become available to all U.S. customers within the next few weeks.