PayPal Expands ‘Pay in 4’ BNPL Offering to Canada

PayPal’s buy now, pay later (BNPL) offering is heading north in time for the holidays.

Beginning with this year’s holiday shopping season, PayPal Pay in 4 will be available for consumers in Canada, according to a Monday (Nov. 10) press release.

“PayPal has served Canadians for over 15 years and is one of the most trusted brands across the country,” Michelle Gill, general manager for small businesses and financial services at PayPal, said in the release. “To meet demand for transparent and trusted payment options, PayPal’s Pay in 4 helps Canadians manage cash flow without late fees or hidden costs. Businesses also benefit as those who offer PayPal BNPL offerings experience increased conversion and higher sales—both critical during [the] peak holiday season.”

PayPal’s 2025 Festive Spending Survey showed that 60% of respondents who haven’t used BNPL would be encouraged to try it if there were no fees, the release said. Pay in 4 lets shoppers divide eligible purchases from $30 to $1,500 into four equal, interest-free payments across six weeks.

The expansion comes as consumers turn to BNPL to manage growing economic pressures.

An October column from PYMNTS CEO Karen Webster said BNPL is not about spending sprees, but more about control. Consumers see installment financing as a rational response to an unpredictable economy, a budgeting strategy rather than a symptom of excess.

PYMNTS Intelligence found that consumers increasingly turn to BNPL to manage the timing of payments for groceries, apparel and other basics.

“The transparency of fixed installment plans, with no compounding interest and clear payoff dates, makes them appealing as credit card rates hover near record highs,” PYMNTS reported Friday (Nov. 7).

Earnings from major BNPL players back up that trend. For example, Affirm reported that active consumers and cardholders reached record levels in its latest quarter, while Sezzle surpassed $1 billion in quarterly volume.

“Consumers are not simply adding more debt; they are also searching for flexibility,” PYMNTS reported. “For households caught between inflation and high rates, BNPL functions as a safety valve that helps them preserve cash flow and maintain spending stability.”