Europe Fintech Paytech

Businesses Can Now Let Customers Pay in Three Instalments Thanks To PayPal

PayPal has announced the launch of PayPal Pay in 3, enabling UK businesses of all sizes to offer buy now, pay later payments without taking on additional risk or paying additional fees.

Through PayPal Pay in 3, businesses can offer their customers the option of making purchases between £45 and £2,000 by paying over three, interest-free payments, with seamless automatic re-payments each month. PayPal Pay in 3 will also appear in the customer’s PayPal wallet, so they can manage their payments online or via the PayPal app.

PayPal Pay in 3 will help businesses drive checkout conversion, revenue and customer loyalty, with the option included in the business’s existing PayPal pricing, paying no additional fees to enable it for their customers. PayPal will pay the business or retailer upfront for the full cost of the purchase.

In 2019, there was a 39% year-on-year increase in the proportion of buy now, pay later payments in the UK. This trend is expected to double by 2023.

PayPal Pay in 3 allows companies from start-ups to globally recognised retailers to adapt to this changing consumer behaviour and offer a greater range of payment options. Retailers including Crew Clothing, French Connection, Robert Dyas and Ryman are integrating PayPal Pay in 3, which is available in the UK from late October 2020.

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.

“We will continue to support for UK retailers and businesses through these challenging times by helping them adapt to changing consumer behaviours around how they shop and pay – especially in the lead up to Black Friday and Christmas. PayPal Pay in 3 offers a flexible way for over 24 million PayPal users to shop while providing companies with a tool that helps drive sales, loyalty and customer choice.”

Commenting on the drive for new e-commerce solutions, Elias Ghanem, Global Head of Market Intelligence, Capgemini’s Financial Services said, “With the advent of flexible payment options and the current situation shaping up in Covid-19 pandemic, POS financing continues to be a prominent credit choice.

“New tech firms recognize the shift in consumer preferences and are coming up with innovative POS lending solutions, and PayPal is one such entry in this space. The rise of e-commerce will further accelerate and foster the uptake by price-sensitive, tech-savvy millennials. With the festive season around the corner, ‘buy-now-pay-later’ sector volumes is set for multi-fold growth. The market is huge and we expect more players to join this segment in the coming days – the success depends on the firms’ brand, offerings and scale. In addition, firms with digital capabilities and platform strength, will have a winning edge over others.


  • Gina is a fintech journalist (BA, MA) who works across broadcast and print. She has written for most national newspapers and started her career in BBC local radio.

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