PayPal in race to adopt ‘buy now, pay later’ model

With its new ‘Pay in 4’ installment program, PayPal is on the road to operate the ‘buy now, pay later’ business model.

According to PayPal, the new installment credit option for users allows customers to pay for purchases, interest-free, over four separate payments.

Further speaking on the product, PayPal noted that the service is an expansion on its existing lineup of Pay Later solutions, which also includes PayPal Credit’s revolving credit line and its Easy Payments.

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Analysts, however, have noted that with Pay in 4, customers will only be able to choose to pay for purchases between $30 and $600 over a six-week period.

As PayPal ventures to explore this short-term payment option, U.S. customers will enjoy the chance to pay for a purchase over time, without fees or interest.

Pay in 4 builds on PayPal’s tests with Easy Payments. The company said it learned that, at some price points, customers preferred the option to pay over a six-week period.

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