PSA: PayPal Launches BNPL Service Called PayPal Pay in 4

MS Paint on 15/07/2021 - 16:41
Last edited 15/07/2021 - 17:09 by 1 other user

Might be old news but here goes:

Buy now, pay later and PayPal

Hi MS Paint,

PayPal has launched a new buy now, pay later solution called PayPal Pay in 4*. We are reaching out to let you know that you might see this solution during your next checkout experience.

PayPal Pay in 4 is available for Australian PayPal account holders on eligible purchases from $30 to $1500 and, if you are eligible, will appear as a payment option when you check out with PayPal*.

Purchases can be divided into 4 equal payments with the first one due at checkout and 3 automatic repayments made fortnightly. Repayments can be made via credit or debit card. No interest, late fees or sign-up fees are payable for using PayPal Pay in 4.

Full Terms & Conditions for PayPal Pay in 4 can be found below.

Terms and Conditions

Financial PayPal

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Comments

  • Hybroid on 15/07/2021 - 16:46
    +10

    Sounds like PayPal going after Afterpay then.

    • AustriaBargain on 15/07/2021 - 20:28
      +3

      They prolly should have done it back when Afterpay first started becoming popular. Every shop in Australia could have a "PayPal Pay in 4" sticker on their window today instead, giving PayPal many millions more in revenue and a foothold in all Aussie and overseas retail.

  • iNeed2Pee on 15/07/2021 - 16:59
    +2

    The triple p. Just how I like it!

    • Pelicannn on 15/07/2021 - 17:15
      +1

      I prefer the sextuplet:

      Prior planning prevents piss poor performance.

    • SF3 on 16/07/2021 - 00:42

      You reminded me of the dial up days.

      Point-to-Point Protocol (PPP) is a TCP/IP protocol that is used to connect one computer system to another.

  • scrimshaw on 15/07/2021 - 17:03
    +1

    Apple Pay also coming soon with Buy Now Pay Later service

    Apple is working on a new service that will let consumers pay for any Apple Pay purchase in instalments over time, rivalling the “buy now, pay later” offerings popularised by services from Affirm Holdings and PayPal.

    The upcoming service, known internally as Apple Pay Later, will use Goldman Sachs as the lender for the loans needed for the instalment offerings, according to people with knowledge of the matter. Goldman Sachs has been Apple’s partner for the Apple Card credit card since 2019, but the new offering is not tied to the Apple Card and does not require the use of one.

  • dcep on 15/07/2021 - 17:13

    cba launch bnpl step pay next month , for their debit / credit card

  • Pelicannn on 15/07/2021 - 17:14
    +2

    Inb4 APT.ASX @ $5.00

    • dcep on 15/07/2021 - 17:18
      +1

      z1p down 12% yesterday , and down another 6% today

      • Pelicannn on 15/07/2021 - 17:20
        +4

        They’ve all been stonking overpriced for about 12 months now so it’s about time that sector has a realisation.

        They have no real protection against future market entries to take away their share and personally whilst I haven’t used any of these services, if I was to pick one it would be with PayPal or the big 4 before APT or Z1P.

        • universe on 15/07/2021 - 17:42
          +3

          The big 4 have no chance considering APT & Z1P have a good head start in the global market. Yes the big 4 have capital but Australian consumers aren't the biggest fans of the big 4 banks.

          Paypal already have global outreach so I can see them being a threat, especially considering their lower merchant fees.

  • Drakesy on 15/07/2021 - 17:15
    +9

    Another company preying on the lowest common denominator.
    A pity that they only make money if you miss a payment, then you get shafted.

    • Pelicannn on 15/07/2021 - 17:18
      +7

      Actually if you read into it, PayPal isn’t making money on late fees. They’re simply making money on the 3% fee they charge businesses. So this is better for both parties, buyer doesn’t have late fees (that being said goodbye credit rating if you’re late) and seller has a lower set up fee as the 3% is lower than what afterpay and the like charges to allow the shop to provide the service.

    • brendanm on 15/07/2021 - 17:26

      Consume consume consume consume

      • Nugs on 15/07/2021 - 18:55
        +1

        Houses aside; if you can't pay cash, you can't afford it
        .

  • c64 on 15/07/2021 - 17:28
    +1

    No interest, late fees or sign-up fees are payable for using PayPal Pay in 4

    so what happens if you miss payments?

    • Pelicannn on 15/07/2021 - 17:41
      +3

      Your credit rating gets knocked down a few notches.

      • c64 on 15/07/2021 - 19:05

        thank you. the t&cs also state they may carry out a credit check

        • Edeena on 15/07/2021 - 19:33

          Not sure about credit check, but I've used Pay in 4 for 3 purchases in the last weeks, and all you have to do is pick Pay in 4, then choose the payment card. I used my main Paypal account which is more than 10 years old so things may be different if your Paypal account is new.

          • Tgb on 16/07/2021 - 23:32

            @Edeena: Nah you must have skipped past the fine print. Very clearly states credit check will be performed and I've been using the same PayPal account for ~10 years.

  • rektrading on 15/07/2021 - 17:31
    +5

    Awesome. More ways for people to rack up personal debt so that they can get rekt.

  • SBOB on 15/07/2021 - 17:56
    +5

    as a consumer, not sure why you wouldnt take this up.

    My paypal automatically comes out of a CC anyway, so this just delays the payments over multiple weeks, allowing the funds which will pay for it to remain in an offset or interest making (barely) account until the CC bill is due, which would be over multiple CC billing cycles now.

    • FlipCrank on 15/07/2021 - 18:22

      That's how all these services are set up. Just like credit cards, the people who get hurt are bad at managing their finances.

      • SBOB on 15/07/2021 - 19:05
        +4

        yeah, but there is a difference between an existing financial company a user already utilises (ie paypal, pretty wide spread usage) and something like afterpay where they have to bother signing up for

        I know i've never been bothered to do sign up to anything like afterpay, but if its just a tickbox in paypal its going to get plenty of traction.

  • niknah on 15/07/2021 - 18:09

    I just got an email from Kogan. Spend $100 and get $30 off if I pay with a "instalment plan". They sent me a private eVoucher code for it.
    https://www.kogan.com/au/fixed-payment-options/

    • brendanm on 15/07/2021 - 18:33

      Terrible deal.

  • Ocker on 15/07/2021 - 18:33

    This was first announced late last year

  • iridiumstem on 15/07/2021 - 19:25
    +2

    Hopefully they will do a thing where they go, here are all the deals that we will give out to push people to use our service.

    And I will use the service just for that deal, and forget about it.

  • pharkurnell on 15/07/2021 - 19:44
    +2

    Whats wrong with save ya cash and buy it with cash?

    Honestly - you dont NEED it yesterday..

    i cant believe how many young people are gettin stitched up by all these loan shark scum companies.

  • Maglia Nera on 15/07/2021 - 20:02
    +2

    HOLDDDDDDDDDDDDDD Afterpay

  • bazingaa on 15/07/2021 - 21:31

    any 5600x deals like with Klarna?

  • SF3 on 15/07/2021 - 21:51

    Looks like you got out of the frying pan with a forum post, not so as a Deal.

    Props for posting this before the “deal”.

  • niffy on 16/07/2021 - 00:03

    I saw this while paying today on Paypal. I did spot in the T&C's if you do choose this method to pay they will have to do a credit file check first before they will proceed to approve you to use Paypal Pay in 4. Just be wary if you down the line want to apply for a mortgage

    • Futura on 16/07/2021 - 00:26

      I'm currently in a Part 9, can't use Zip and the others except Afterpay but Pay in 4 worked for me so I was very happy.

      • brendanm on 16/07/2021 - 12:05
        -1

        You're in a part 9, and are taking on additional debt?

  • Futura on 16/07/2021 - 00:27

    Used Pay in 4 today and process was seamless. Instead of selecting my debit card I selected the Pay in 4 option and I was good to go.

    • capslock janitor on 03/12/2022 - 11:49

      but then u need to select which card it comes out?

  • Futura on 16/07/2021 - 00:39
    +1

    Press release for anyone interested https://newsroom.au.paypal-corp.com/PayPal_launches_Australi…

  • AussieDaddy on 16/07/2021 - 00:45
    +2

    The best payment option is the one where you buy the things you need with money you have upfront.

    • SBOB on 16/07/2021 - 06:25
      +5

      Using someone else's money for a period of time , allowing you to keep your own money somewhere like am offset account that little bit longer, seems like a wiser choice.

    • iridiumstem on 16/07/2021 - 08:39

      True, but if things happen left right and centre and something breaks down, say like a washing machine or a fridge, it might be better to get something that's decent.

      Rainy day funds would be ideal, but I feel like shit always happens in piles.

  • plmko on 16/07/2021 - 01:06

    The usual gang like Afterpay and Zip aren't popular because of the instalment system, they're popular because they reduce friction at the checkout.

    Paypal only does that half way but it still requires you to do your usual sign ins and crap. So just like every other weak BNPL offering, this will be but a blip on Afterpay etc. If anything Paypal coming will simply highlight how well ahead the first mover BNPL companies are.

    But the usual fake news will make it's rounds that the recent drops in BNPL share prices are due to competitive threats.

    • Futura on 16/07/2021 - 08:28

      In my personal experience the check out experience with PayPal Pay in 4 has been easier than Afterpay.

      • Swiftz on 16/07/2021 - 09:00

        Even at retails?

  • BigBirdy on 16/07/2021 - 08:38
    +2

    Waiting for the “Ebay 20% off if paying with PayPal Pay in 4” deal …

  • AnnaZa on 16/07/2021 - 09:04

    I already used them for IKEA and paid out all four payments. So it was more than 2 months ago. Should have known better and sold my Afterpay stock then.

  • Emcaljoe on 10/12/2022 - 15:13

    Great product…if you can cover the payments

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