In the run-up to Christmas, PayPal has introduced a feature that allows British shoppers to pay for items in three instalments as part of efforts to boost sales for Covid-stricken businesses.
The new Pay-in-3 tool will allow customers using PayPal to pay for goods over three, interest-free instalments, automatically taken each month.
Pay in 3 will apply to purchases between £45 and £2,000, and businesses will receive full payment upfront from PayPal, the California-based company said.
PayPal said there will be no charges for either the retailer or customer, though a missed payment would result in a flat £12 fee.
Retail chains have already enrolled
The new PayPal Pay in 3 solution is expected to help businesses to boost checkout conversion, revenue and customer loyalty, the company said.
PayPal also said many retailers, including Crew Clothing, French Connection, Robert Dyas and Ryman, have already signed up for the new service, which is scheduled to go live later this month.
Rob Harper, UK Director of Enterprise Accounts at PayPal, said:
“During the coronavirus pandemic, we have seen the number of people in the UK shopping online increase dramatically. At the same time, many more consumers are looking to spread the cost of those purchases.
“We have developed PayPal Pay in 3 to meet that need, building on our heritage as a responsible lender through PayPal Credit, which we launched in the UK in 2014, and has served more than two million customers to date.”
More support for businesses and consumers
Harper added that PayPal will continue to support UK retailers and businesses through the pandemic, especially in the lead up to Black Friday and Christmas.
The company offers PayPal Credit, an open-end (revolving) credit card account that provides a reusable credit line built into your account with PayPal giving you the flexibility to pay for your purchases right away or pay over time.
To be eligible for a credit limit increase you must: Have been a PayPal Credit customer for at least 6 months. Have not been in arrears in the last 6 months. Have transacted with PayPal Credit in the last 6 months.