Pay in 4 was launched at the end of last year and continues to grow in popularity with shoppers. The short application process and simple to use format allows customers to pay for goods and services over four installments. It’s an option at checkout available to all PayPal PYPL users, and it integrates with PayPal wallet, allowing users to manage their payments in the app. A key reason that Pay in 4 is popular in the U.S. market is that the installments can be aligned with paydays which come every two weeks for most Americans, so the system becomes a budgeting tool creating expense and revenue flows that are in sync.
The U.S. BNPL (buy-now-pay-later) market is expected to grow by 41.7% on an annual basis to reach over $126 million in 2021. Significant growth of the BNPL market in the U.S. can be attributed to a major shift to online purchasing, an uncertain economic slowdown in 2020 and consumers wanting more control over finances.
Pay in 4 is part of a growing group of companies specializing in the BNPL market including Affirm, Afterpay, Klarna and Sezzle. However, PayPal has actually been in the BNPL market longer since the acquisition of Bill Me Later back in 2008 which is considered a revolving credit product where users can pay back the amount borrowed within six months with no interest applied.
The launch and development of Pay in 4 was added last year to compliment PayPal’s existing products. Doug Bland, senior vice-president and general manager of global credit of PayPal, stated, “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.”
Continue reading Pay In 4, PayPal’s Buy-Now-Pay-Later Product, Resonates With Shoppers on Forbes
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