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PayPal Pay in 3 buy now, pay later loans launch in UK

By Chris Dawson October 14, 2020 - 11:09 am

PayPal today announced the launch of PayPal Pay in 3, enabling UK businesses of all sizes to offer buy now, pay later payments without taking on additional risk or paying additional fees. The timing is great as we approach Black Friday in the year of a pandemic.

If you already offer PayPal on your website, this appears a bit of a no brainer. There are going to be a lot of consumers who have reduced incomes due to the pandemic and this will enable them to spend beyond their immediate income for Christmas and worry about how to pay for it in the New Year, which let’s be honest is what consumers have done with credit cards for years anyway. In the mean time you get paid in full up front.

Through PayPal Pay in 3, businesses can offer their customers the option of making purchases between £45 and £2,000 by paying over three, interest-free payments, with seamless automatic re-payments each month. PayPal Pay in 3 will also appear in the customer’s PayPal wallet, so they can manage their payments online or via the PayPal app.

PayPal Pay in 3 will help businesses drive checkout conversion, revenue and customer loyalty, with the option included in the business’s existing PayPal pricing, paying no additional fees to enable it for their customers. PayPal will pay the business or retailer upfront for the full cost of the purchase. This sounds very similar to Klarna Instalments which enables customers to pay in 3 equal interest-free instalments but, if you already offer PayPal, saves the effort of signing up to a new payments provider.

In 2019, there was a 39% year-on-year increase in the proportion of buy now, pay later payments in the UK. This trend is expected to double by 2023. PayPal Pay in 3 allows companies from start-ups to globally recognised retailers to adapt to this changing consumer behaviour and offer a greater range of payment options.

Retailers including Crew Clothing, French Connection, Robert Dyas and Ryman are integrating PayPal Pay in 3, which is available in the UK from late October 2020. If you want in and to offer PayPal Pay in 3 on your website, platform or marketplace you can pre-register on the PayPal website.

“During the coronavirus pandemic, we have seen the number of people in the UK shopping online increase dramatically. At the same time, many more consumers are looking to spread the cost of those purchases. We have developed PayPal Pay in 3 to meet that need, building on our heritage as a responsible lender through PayPal Credit, which we launched in the UK in 2014, and has served more than two million customers to date.

We will continue to support for UK retailers and businesses through these challenging times by helping them adapt to changing consumer behaviours around how they shop and pay – especially in the lead up to Black Friday and Christmas. PayPal Pay in 3 offers a flexible way for over 24 million PayPal users to shop while providing companies with a tool that helps drive sales, loyalty and customer choice.”
– Rob Harper, UK Director of Enterprise Accounts, PayPal

  • victor
    1 week ago

    somethings going to go pop
    all this credit, loans, grants, etc
    will need to be paid somehow one day

  • SAM
    1 week ago

    In 2019, there was a 39% year-on-year increase in the proportion of buy now, pay later payments in the UK. = More debt people just will never learn.

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