June 30, 2020 | Doug Bland, SVP & GM, Credit
PayPal is expanding its “buy now, pay later” solutions to France, with a new installments product that will enable customers1 to split purchases into four equal payments over three months, nearly anywhere PayPal is offered.
Online installments are incredibly popular with French consumers: 64 percent of users would have postponed or not completed their purchase without an installment option available, and 84 percent are more likely to shop again at a retailer who offers installments2. The option to pay with installments will be automatically available as a funding mechanism in the PayPal wallet3 at all qualified PayPal merchants in France.
With installment plans mostly limited to large retailers in France, people can now support their favorite small businesses with this form of payment in the wake of the COVID-19 pandemic. PayPal is one of the first companies to provide installment solutions for small businesses in France. There are no additional fees or integrations for the merchant, and the merchant gets paid up front. Customers receive a credit decision almost instantly, and pay 25% at the time of purchase for items €100 - €2,000. To learn more about this product in French, click here.
PayPal is continuing to expand “buy now, pay later” solutions through global expansion and customer-driven innovation. PayPal Credit – the digital, reusable line of credit with No Interest if paid in full in 6 months on purchases of $99 or more (see terms) – helps merchants increase sales and loyalty, and has processed more than $50 billion in lending since 20084. PayPal Credit expanded to the U.K. in 2014, surpassing £2 billion in U.K. lending in 2019. PayPal Ratenzahlung, German Installments by PayPal, launched in 2016 and serves PayPal’s 23 million customers in Germany. In Australia, the Netherlands, Germany, France and Spain, consumers have the option to “Pay After Delivery” – another “buy now, pay later” offering supported by PayPal.
As one of the original POS financing platforms, PayPal has withstood many credit cycles, including the 2008 recession. In the challenging retail environment and economic impact of COVID-19, PayPal has been drawing upon its experience and leadership in the POS financing space to help merchants survive and provide flexible shopping experiences to its customers.
1Subject to PayPal’s acceptance of their applications
2CSA Research, Feb 2019, 1909 users surveyed
3Subject to the consumer’s eligibility4PayPal Credit Transaction Volume Reaches $50B Milestone (February 4, 2019)