![]() “We’re in the business of bringing buyers and sellers together on our platform. ![]() All of the payment solutions we’ve added to date to the PayPal wallet benefit our consumer and business customers without any additional charge and PayPal Pay in 4 is no different,” said Mr Toon. “PayPal Pay in 4 is another solution that we’ve added to the PayPal digital wallet. So how will PayPal make its money? PayPal charges businesses a fee for each transaction but Pay in 4 is available at no extra cost to business customers. Merchants can also charge a surcharge but Mr Toon pointed out that the vast majority of Australian merchants do not surcharge for the PayPal service. The only fees you might be charged by PayPal are currency conversion fees on international purchases, if applicable. This has now been scrapped for Aussie customers. When PayPal first announced PayPal Pay in 4 in March it was set to charge a late payment fee when customers missed a payment. PayPal’s Buyer Protection will also apply for transactions made using PayPal Pay in 4, which means that if a product does not arrive PayPal can refund the full purchase price, including delivery. According to the PayPal website, as long as you see the option for Pay in 4 at checkout, you can choose a new Pay in 4 plan. ![]() You can even have multiple Pay in 4 plans at the same time. “If a customer is not eligible and they click on the standalone ‘PayPal Pay in 4 button’ on a merchant’s website, they’ll get a message that says they can’t use PayPal Pay in 4 at this time, and they’ll be given the option to choose another payment method,” explained Mr Toon. “If a consumer has a negative balance in their PayPal account or other risks have been identified in relation to the consumer, they will not see PayPal Pay in 4 as an option in the PayPal wallet.”īusinesses can also present PayPal Pay in 4 as a distinct payment option on their website but again you’ll have to meet the eligibility criteria mentioned above. “We are using our data and systems for suitability modelling to help ensure PayPal Pay in 4 will only appear for suitable customers,” Mr Toon told Canstar. You’ll just need to use the standard PayPal button to pay for your purchase and Pay in 4 will appear at checkout. Pay in 4 will be available as an option in the PayPal wallet for “customers with accounts in good standing, who have met eligibility criteria and are subject to suitability checks”. ![]() Afterpay is set up this way as well, while other buy now pay later platforms may work differently. So, essentially you have to pay for the purchase in six weeks. Repayments are made automatically from your PayPal account using the payment method you have selected.įor example, let’s say you purchase an item for $500, you will pay $125 upfront and then make $125 repayments each fortnight. The first payment is made at the time of purchase and the remaining three will be made with automatic repayments drawn every two weeks. PayPal Pay in 4 lets you split eligible purchases, from $30 to $2,000, over four equal, interest-free instalments. Image source: PayPal How does PayPal Pay in 4 work? Instead, you pay it off in four equal, interest-free instalments. It is essentially a buy now pay later service which allows you to purchase an item without paying for it in full upfront. During the pandemic we saw more than two million Australians start shopping online for the first time.” What is PayPal Pay in 4? “Shopping habits are changing at an unprecedented rate. “Australian consumers are looking for more choice and flexibility and PayPal Pay in 4 gives them yet another way to purchase securely using PayPal,” said Andrew Toon, general manager, payments, PayPal Australia in March when announcing the company’s plans to roll out the service. PayPal is taking on the likes of Afterpay and Zip, announcing its own buy now pay later service – PayPal Pay in 4 – is now available to eligible PayPal Australian customers across its base of more than nine million active accounts. Find out how it works and how it stacks up against Afterpay. PayPal has introduced a buy now pay later service in Australia.
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