PayPal has debuted PayPal Pay Monthly, a buy now, pay later (BNPL) offering issued by WebBank, according to a Wednesday (June 15) press release emailed to PYMNTS.
The new offering lets customers space payments over a long period of time, giving them “greater flexibility and even more choices to pay for the items they want and need,” the release stated.
Customers can make purchases between $199 and $10,000, dividing the cost into payments over a six-month to two-year period, with the first payment due one month after purchase.
After a customer selects Pay Monthly, they fill out an application at checkout and, if approved, are offered up to three plans of varying lengths with risk-based annual percentage rate (APR) ranging from 0% to 29.99%. From there, customers pick the option that best fits their budget.
“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,” said PayPal Vice President of Global Pay Later Products Greg Lisiewski in the release. “Pay Monthly builds on our commitment to deliver leading payment solutions that offer customers choice to ensure checkout matches their needs and budgeting preferences.”
Pay Monthly allows customers to choose between using their debit card or bank account for repayment, managing payments through the PayPal app and online, according to the release. The service will be automatically available for merchants at no additional cost or risk and requires no back-office integration to add as a payment option.
And, similar to the company’s Pay in 4 product, merchants also have the option to let customers know early in the shopping process that they will have the choice to spread out payments at checkout.
In April, PayPal reported it logged $3.6 billion in volume in the first quarter, with 18 million customer accounts choosing this funding option since launch. In addition, 70% of those users engaged with BNPL using the company’s digital wallet.