PayPal Introduces “Pay in 4” Installment Credit Feature

There was a time when PayPal was pretty much the only online payments option available to people, and it managed to change the way business was conducted in the process. Now, however, PayPal has a number of different competitors, and this has forced the online payments facilitator to up its own game.

One new phenomenon that has been noted by a lot of people has to do with offering credit options to users. Payment processors such as Klarna, AfterPay and Affirm have all started offering options that enable users to buy things now and pay for them later essentially. This is something PayPal was lagging behind in, and the payment processing giant has announced that it will be launching a similar program of its own, one that would be designed to help make things easier for buyers.

This is called the “Pay in 4” program, and it basically allows users to split up payments into four easy installments. The minimum amount required for this option to be available is $30, and it can be availed for purchases up to $600. PayPal definitely has an edge here, and part of that edge involves the company having a direct link to a user’s bank account. This means that the chances of missed payments is far lower, something that a lot of its competitors are having trouble with.

That said, PayPal is going to be facing some stiff competition here. Klarna introduced an almost identical pay in 4 system for its own users, and while PayPal does have the advantage of a direct link to bank accounts this doesn’t mean that irresponsible users won’t be able to take advantage of the feature and not pay later. Still, this is an interesting move for the industry and it will definitely facilitate growth in the economy for a wide variety of reasons.



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