Customers can now choose from a greater number of Buy Now, Pay Later options, allowing them to spread their payments out over time.
Following Apple’s foray into the market, Paypal has released an update to make its own version of the Buy Now, Pay Later (BNPL) service more appealing. WebBank is the company behind the new PayPal Pay Monthly service. It will give consumers the ability to spread payments over longer periods.
What is PayPal?
PayPal is a secure online payment system that allows you to pay for things online and send and receive money. Once you’ve linked your bank account, credit card, or debit card to your PayPal account, you can use it to make online purchases with participating stores. PayPal acts as a middleman between your bank and merchants, ensuring the security of your payment information.
“PayPal Pay Monthly,” according to the U.S. payments giant, is designed to give customers a more flexible way to pay. Users who choose “Pay Monthly” can break down the total cost into monthly payments over a six-to 24-month period, rather than having to pay off purchases over a six-week period as before.
How does it work?
Customers can use PayPal Pay Monthly to make purchases ranging from $199 to $10,000 and spread the cost over a six-month to two-year period. One month after the purchase date, the first payment is due.
“Consumers’ attitudes toward paying for larger purchases are changing, and there is a growing demand for flexible payment options,” said Greg Lisiewski, vice president of PayPal Shopping and Pay Later. “We had 22 million PayPal customers use our pay later feature last year.”
According to the company, “Pay Monthly builds on our commitment to provide leading payment solutions that give customers options at checkout to ensure their needs and budgeting preferences are met.” Users can choose their repayment method and opt for automatic payments up front when completing a transaction using PayPal’s BNPL offerings, such as Pay Monthly and PayPal Pay in 4.
Benefits of PayPal
- Security: You only have to type in your credit cards and bank accounts once on the PayPal secure system when you sign up for a PayPal account. You’ll never have to share your credit card information online again once you’ve done that. When you pay with PayPal, your credit card information is protected, so you can shop without worrying about a hacker stealing your account information from your online merchant.
- Flexibility: Remove the embarrassment and inconvenience of attempting to purchase something online only to have your credit card declined. You can trust your purchases to go through the first time because you can fund your PayPal account with multiple bank accounts, debit cards, and credit cards. PayPal will then look for funds in the order you specify from your sources.
- Online Auctions: How could anyone discuss PayPal without bringing up eBay? You can safely place bids and make purchases because PayPal is integrated with the online auction powerhouse. When it comes to one of the most popular online shopping sites, eBay bidders have more protection than most credit card holders thanks to buyer protection and a structured complaint resolution process.
- Send Money: PayPal users can send money to a child in college or a friend in trouble anywhere in the world with the click of a mouse. Save money and time on Western Union-style transfers while sending money faster than ever before.
- Cost: One of the best reasons to use PayPal is that it is free. Yes, that is correct. No annual membership fees, processing fees, or service fees are required. PayPal users get access to all of the service’s powerful features without having to pay anything.
Customers will be able to use the service beginning today, and it will be available to all customers over the next few weeks. It will be available at millions of PayPal retailers such as Outdoorsy, Samsonite, Fossil, Advance Auto, and others. As a business partner, Alkye recommends bringing the most up-to-date technology to our clients to help them grow their businesses.