PayPal offers BNPL installment loans in UK
PayPal is rolling out a new buy now, pay later (BNPL) solution called PayPal Pay in 3 in the UK, according to a press release.
The solution, similar to the company’s Pay in 4 program in the US and Pay in 4x in France, introduced earlier this year, will allow customers to pay for their items in three monthly installments.
The release says Pay in 3 will help businesses increase checkout conversions, revenue and customer loyalty. Payments will be interest-free and guaranteed by the security of PayPal’s growing options for Pay Later solutions.
Pay in 3 will give customers the option of paying for items between £ 45 and £ 2,000 with optional transparent automatic refunds, the statement said. The program will also appear in the customer’s PayPal wallet, allowing them to manage payments online or on their mobile apps.
The statement said there was a 39% year-over-year increase in the number of people using BNPL services in the UK in 2019, and the trend is expected to double by 2023. Rob Harper , UK director of corporate accounts at PayPal, said the coronavirus pandemic had increased the number of people shopping online and the BNPL solution was attracting people trying to be fiscally responsible.
He said the upcoming holiday season, as people start shopping for gifts and the like, will likely result in more spending.
“We will continue to support UK retailers and businesses in these difficult times by helping them adapt to changing consumer behaviors about how they shop and pay, especially as Black approaches. Friday and Christmas, ”he said, according to the statement.
John Rainey, chief financial officer and executive vice president of global customer operations at PayPal, recently told Karen Webster that the important thing for a business operating during the pandemic is to adapt quickly, as PayPal has done before by offering loans to SMEs through the Paycheck Protection Program. and implementing work-from-home solutions as many companies have been doing since March.