PayPal is selling merchants on its new “Pay in 4” financing solution, telling them it can boost conversions.
PayPal Pay in 4 lets shoppers make a purchase and pay over four, interest-free installments. But sellers get paid right away. PayPal explained in Monday’s announcement:
“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.
“Pay in 4 is included in the merchant’s existing PayPal pricing, so merchants don’t pay any additional fees to enable it for their customers.”
PayPal also said merchants can now add dynamic messaging “to deliver relevant, in-context pay later options early in the shopping journey, from the homepage, to product pages, to checkout.”
The new offering will become available to consumers on qualifying purchase in early Q4 2020 (that would be as early as October).
Merchants can pre-register on the PayPal website.
This sounds like a great deal for my customers. BUT, where are the details? Like “What happens if the customer misses a payment?” “What if they want to cancel?” “What if I need to give a partial refund?”
Far too many things lately, like PPP loans, where new initiatives are touted as a great thing but not enough information given to make an informed decision.
Why does PayPal want to attract those payday loan type of buyers? What’s next? Offering discounts to EBT losers like Amazon does?