April 24, 2024

'Buy Now, Pay Later': PayPal No Longer Charges Late Payments

‘Buy Now, Pay Later’: PayPal No Longer Charges Late Payments

PayPal has already eliminated late payment fees in Germany and Austria, and the payment provider has now followed suit in the USA, UK and France. With this action, PayPal wants to offer the “most customer-focused installment payment system” worldwide.

PayPal has announced that it will no longer charge late fees on “Buy Now, Pay Later” payments starting in October. The change affects the ‘Pay 4’ in the US, ‘Pay in 3’ in the UK and ‘Pay in 4X’ in France.

In Germany and Austria, the payment provider has already eliminated the late fee.

Annuity payments are especially popular with GenZ and Millennials

While customers have the option to pay for purchases in installments or after a certain period of time using the “Buy Now, Pay Later” option, merchants receive the full amount directly when purchasing from PayPal.

With fees abolished, the payment service provider now wants to meet the needs of retailers and customers alike, thus offering the “most customer-focused installment payment system” worldwide.

According to a study cited by the company in the press release, 33 percent of customers choose the “buy now, pay later” payment when there are no late fees. Additionally, annuity is especially popular with the majority (57 percent) of Generation Z and Millennials – 37 percent believe it gives them more control over their finances.

“Building on the successful launch of ‘Pay 4’ in Australia with No Late Fee, we know cancellation will provide a better ‘buy now, pay later’ experience. We are able to help consumers make plans on their terms,” said Greg Lisewski, Vice President of Global Postpaid Products. PayPal, while helping merchants increase their sales.