9:28 h / 2021/08/19
PayPal Holdings, Inc. yesterday announced it will no longer charge late fees for missed payments on buy now, pay later products globally. Starting October 1, new customer purchases with Pay in 4 in the United States, Pay in 3 in the United Kingdom, and Pay in 4X in France will no longer be subject to late fees - joining PayPal's buy now, pay later solutions in Germany and Australia which do not charge late fees for missed payments. Eliminating late fees builds on PayPal's commitment to deliver the most customercentric, global installment solution portfolio that helps meet the needs of today's consumers and merchants.
Consumers are looking for ways to manage their finances and pay fewer fees. A recent study found 33 percent of consumers say that no late fees are an important feature in choosing a buy now, pay later payment option. Additionally, 57 percent of Gen Z and Millennials feel buy now, pay later is a smarter way to shop, while 37 percent say it gives them more control of their finances.
While consumers continue to use buy now, pay later products, merchants are also seeing the benefits. Merchants who offer Pay in 4 benefit from the fact that 50 percent of consumers make additional PayPal pay later purchases within three months of their first purchase and 70 percent within six months. PayPal's Pay Later offering comes at no additional cost to merchants, while boosting their conversion rates and increasing cart sizes by as much as 39 percent.