After Apple shook up the buy now, pay later market with news that it would now be a competitor to established firms, PayPal this morning is introducing another buy now, pay later product to follow the 2020 launch of its “Pay in 4” installment program. The new offering, “PayPal Pay Monthly,” is designed to give customers a more flexible way to pay, the U.S. payments giant said. Instead of having to pay off purchases over a six-week period as before, “Pay Monthly” users can break down the total cost into monthly payments over a six- to 24-month period.
Consumers can also use the product to make larger purchases.
While PayPal’s “Pay in 4” program allows customers to pay for purchases between $30 and $1,500 (up from $600 at launch), the new program allows consumers to make purchases between $199 and $10,000, with the first payment due one month after the purchase is made. Customers will then make monthly payments until the purchase price and interest are fully paid off.
To use the service, online shoppers will be presented with the option to “Pay Monthly” at checkout. After clicking through, they will then fill out an application. If approved, they’ll be shown up to three different plans of varying lengths to choose from, each with risk-based APR ranging from 0% to 29.99%. PayPal says the APR is based on consumer credit eligibility and notes its lender for the service is WebBank.
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