PayPal has rolled out a new, fee-free buy now, pay later (BNPL) service for Canadian consumers, called PayPal Pay in 4.
The solution allows consumers in the country to split eligible online purchases ranging from C$30 ($21.3) to C$1,500 ($1,067.7) into four equal payments over six weeks, with no additional costs such as late fees or sign-up charges.
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The company stated that automatic payments help consumers stay on track by allowing them to fund payments using debit card, credit card, or bank account.
Consumers also have the option to pay off their balance early through the PayPal app or online platform.
According to PayPal’s 2025 Festive Spending Survey, consumer interest in BNPL services is significant. Sixty percent of survey respondents who have not previously used BNPL said they would be encouraged to try it if no fees were involved.
PayPal Small Business and Financial Services general manager Michelle Gill said: “PayPal has served Canadians for over 15 years and is one of the most trusted brands across the country. To meet demand for transparent and trusted payment options, PayPal’s Pay in 4 helps Canadians manage cash flow without late fees or hidden costs.
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By GlobalData“Businesses also benefit as those who offer PayPal BNPL offerings experience increased conversion and higher sales—both critical during peak holiday season.”
PayPal stated that for businesses of all sizes, BNPL has become an essential offering, with customers now expecting it as a standard payment option.
PayPal’s BNPL solution is stated to drive conversions with a 90% global approval rate and increase sales by delivering order values that are 80% higher.
The company also indicated that when businesses present the BNPL option earlier in the purchasing process, it can help lower cart abandonment rates and increase conversions, particularly during busy shopping periods.
Eligible purchases made using PayPal Pay in 4 are included under PayPal’s Purchase Protection.
The new service is available at Canadian and international online retailers, travel, lifestyle, and consumer goods sectors.
