By Deirdre Tynan • 18 August 2021 • 15:43
PayPal has announced it will no longer charge late fees for missed payments on buy now, pay later products globally.
Starting October 1, new customer purchases with Pay in 4 in the United States, Pay in 3 in the United Kingdom, and Pay in 4X in France will no longer be subject to late fees, joining PayPal’s buy now, pay later solutions in Germany and Australia which do not charge late fees for missed payments. “Eliminating late fees builds on PayPal’s commitment to deliver the most customer-centric, global installment solution portfolio that helps meet the needs of today’s consumers and merchants,” the company said.
While consumers continue to use buy now, pay later products, merchants are also seeing the benefits. Merchants who offer Pay in 4 benefit from the fact that 50 percent of consumers make additional PayPal pay later purchases within three months of their first purchase and 70 percent within six months. PayPal’s Pay Later offering comes at no additional cost to merchants, while boosting their conversion rates and increasing cart sizes by as much as 39 percent.
“Building on the success of our Pay in 4 launch in Australia without late fees, we know that eliminating late fees delivers an even better buy now, pay later experience that provides incredible value to our consumers and merchant partners. We’re able to help provide consumers peace of mind as they manage their plans on their terms while also helping merchants increase sales conversions,” said Greg Lisiewski, Vice President of Global Pay Later Products at PayPal.
“This change is closely coupled with PayPal’s mission and values as we seek to remove hurdles that provide financial services to customers of all types while helping our merchant partners succeed in the changing retail landscape,” he added on August 18.
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Deirdre Tynan is an award-winning journalist who enjoys bringing the best in news reporting to Spain’s largest English-language newspaper, Euro Weekly News. She has previously worked at The Mirror, Ireland on Sunday and for news agencies, media outlets and international organisations in America, Europe and Asia. A huge fan of British politics and newspapers, Deirdre is equally fascinated by the political scene in Madrid and Sevilla. She moved to Spain in 2018 and is based in Jaen.
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