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New Player in the Game: PayPal Launches BNPL Platform
PayPal is the next player in the big game of Buy Now, Pay Later, launching its ‘Pay in4’ platform in the United States.
This new platform for the payment service offers merchants and partners to get paid upfront, while the customers pay for purchases in four instalments.
“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 of 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.”
The platform includes PayPal’s existing pricing – no additional fees will be added to merchants that decide to incorporate the BNPL service. According to a report from ComScore, PayPal Checkout converts 82 percent higher than a checkout without PayPal.
Some of the first retailers that will utilise the platform include Aldo Group and Blinds.com. WooCommerce, Swappa and BigCommerce will also leverage Pay in 4.
“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,” said Gregoire Baret, the Senior Director of Omnichannel Experience at Aldo Group.
In Australia, the popularity of BNPL has remained constant over the last few years. Flexible payment options often result in higher customer satisfaction. In the United States, there has been a slower adoption rate of flexible payment platforms, but it has increased dramatically over the last 12 months.
PayPal launched its own version of BNPL in Australia “Pay After Delivery’, which is also available in Canada, Germany, France, Spain, the Netherlands and UK.