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June 16, 2022

PayPal expands checkout option for consumers with new BNPL offering

PayPal has launched a monthly buy now, pay later (BNPL) offering in the US to expand checkout options for consumers in the country.

Free Report
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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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.

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.

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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