PayPal is adding a new payment solution, Pay in 4, to its Pay Later suite of products.
Pay in 4 gives customers purchasing merchandise between $30 and $600 with PayPal to pay in four installments without accruing additional fees or interest, according to a press release.
The installment plan first pays the merchant and partner upfront, and then gives the customer a six-week period to pay for the merchandise in four no-interest and no fee installment payments. The Pay 4 plan appears in the customer’s PayPal wallet, giving them the option to manage their payments through the PayPal app.
“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,” Doug Bland, SVP global credit at PayPal said in the release. “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.”