The new offering, dubbed PayPal Pay Monthly, is issued by WebBank. It will enable consumers the flexibility to spread payments out over longer periods.
With PayPal Pay Monthly, customers can make purchases between $199 and $10,000 and split the cost into payments over a six-month to two-year period. The first payment will be due one month after purchase.
PayPal Shopping and Pay Later vice-president Greg Lisiewski said: “How consumers look to pay for larger purchases is evolving and there is a growing demand for flexible payment options with 22 million PayPal customers using our pay later offering this past year.
“Pay Monthly builds on our commitment to deliver leading payment solutions that offer customers choice to ensure checkout matches their needs and budgeting preferences.”
PayPal’s BNPL offerings, including Pay Monthly and PayPal Pay in 4, allow users to select their repayment method and opt for automatic payments up front when completing their transaction.
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The company said its latest offering will be automatically available for merchants at no additional cost or risk. Merchants will be able to extend the offering to consumers at checkout without requiring any complex back-office integrations.
Additionally, they will have the option to add dynamic messaging to inform customers about the relevant Pay Later options early in the shopping process.
Last year, PayPal struck a deal to buy Japanese BNPL services provider Paidy for nearly $2.7bn.