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Online payments company PayPal has announced a new buy now, pay later (BNPL) solution to launch in Australia this June.
Called PayPal Pay in 4, the new payment system will be offered to consumers as an option at checkout in the PayPal wallet. Customers will be able to split eligible purchases from $50 to $1,500 over four equal, interest-free instalments. Repayments will be automatically drawn every two weeks, with no fees charged for on-time payments.
Late fees will be applied for late or missed payments. There will be a late payment fee of $10 for purchases under $125, charged one time with a cap at $10. For purchases over $125, there will be a $10 late payment fee for every missed payment, capped at three – $30.
Businesses will also be able to implement the new system on e-commerce websites and include “PayPal Pay in 4 messaging”, which will be able to dynamically show customers individual instalment amounts based on what they are browsing or purchasing, to clearly understand what each payment will be.
PayPal says the security and protection conditions they already offer will also apply for eligible transactions made using PayPal Pay in 4. PayPal’s Buyer Protection will be covering eligible purchases, so full refunds and delivery fee returns will be offered for undelivered products, while PayPal’s Seller Protection will cover businesses for eligible purchases as well.
“Our Australian business customers have been requesting buy now pay later functionality from us, and we’re excited that we can offer PayPal Pay in 4 to them at no additional cost,” said Andrew Toon, General Manager, Payments, PayPal Australia.
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“Shopping habits are changing at an unprecedented rate and during the pandemic we saw more than two million Australians start shopping online for the first time. We will continue to support Australian businesses of all sizes to adapt to rapidly changing consumer behaviours by evolving our service to meet their needs.”
PayPal Pay in 4 is set to launch in Australia in early June, in time for End of Financial Year Sales.