PayPal Holdings, Inc. (NASDAQ: PYPL) recently announced that it will no longer charge late fees on buy now, pay later purchases anywhere in the globe. Beginning October 1, new client purchases made with Pay in 4 in the United States, Pay in 3 in the United Kingdom, and Pay in 4X in France will be free of late fees, joining PayPal’s buy now, pay later solutions in Germany and Australia, which do not charge late fees for missed payments. The abolition of late fees strengthens PayPal’s commitment to providing the most customer-centric, global installment solution portfolio that helps fulfill the needs of today’s customers and merchants.
Consumers are looking for solutions to better manage their money and spend less money. According to a recent study, 33 % consider the absence of late fees to be a key factor when selecting a purchase now, pay later payment option1. Furthermore, 57 percent of Gen Z and Millennials believe that buying now and paying later is a better way to shop, and 37% believe it provides them more financial control.
Consumers are continuing to adopt purchases now, pay later for items, and retailers are enjoying the benefits as well. Merchants who offer Pay in 4 profit from the fact that 50% of PayPal pay later customers to make subsequent purchases within three months of their original purchase, and 70% within six months. PayPal’s Pay Later service is free to merchants, and it has been shown to increase conversion rates and cart sizes by as much as 39%.
“Building on the success of our Pay in 4 launches in Australia without late fees, we know that eliminating late fees delivers an even better buy now, pay later experience that provides incredible value to our consumers and merchant partners. We’re able to help provide consumers peace of mind as they manage their plans on their terms while also helping merchants increase sales conversions,” said Greg Lisiewski, Vice President of Global Pay Later Products at PayPal. “This change is closely coupled with PayPal’s mission and values as we seek to remove hurdles that provide financial services to customers of all types while helping our merchant partners succeed in the changing retail landscape.”
Samsonite, the world’s most well-known and largest travel luggage company, started utilizing PayPal Pay in 4 last year, just a few months after the service launched in October 2020. When customers used PayPal Pay in 4, the company witnessed sustained gains, with an average order value increase of 25%.
Know More About Pay Pal
There are many countries that accept online money transfers, but PayPal Holdings, Inc. offers an electronic alternative to traditional paper methods such as checks and money orders. The company charges a fee for its services as a payment processor for online retailers, auction sites, and other commercial customers. Through PayPal’s services, consumers and businesses are able to conduct financial transactions online by transferring funds via electronic means.
PayPal can be used to pay for online auctions on sites like eBay, to buy and sell goods and services, and to make donations. There’s no need for a PayPal account to use the company’s products and services. Currency conversion options are available in PayPal’s account settings section for users.