PayPal introduced another buy now, pay later (BNPL) option for its customers in the United Kingdom, according to a Tuesday (July 14) press release.
Pay in 30 Days lets shoppers complete a purchase up front and pay the full amount up to 30 days later, the release said.
“British customers are smart,” Tamer El-Emary, general manager for PayPal in the UK, said in the release. “They want the flexibility to pay on their terms, but they’re also more discerning than ever about who they trust with their money. We’ve seen that in how our customers use PayPal, and our BNPL product offering, including both Pay in 3 and now Pay in 30 Days is our response: genuine flexibility, zero fees and the reassurance of a brand that’s been part of U.K. shopping for over two decades.”
The offering applies to purchases of between 1 pound (about $1.30) and 900 pounds (about $1,200), giving customers up to 30 days to pay the full amount, according to the release. This control of when the payment is made within the 30-day window means that shoppers can align it with their paydays or their scheduled bill payments.
“For merchants, Pay in 30 Days provides another way to give customers flexibility at checkout without adding complexity,” the release said, citing PayPal research showing that businesses that offer BNPL said offering a range of customer payment preferences is an important competitive priority.
The launch comes one day before a new BNPL regime comes into effect in the U.K. The payment method will now fall under the purview of the country’s Financial Conduct Authority.
“As BNPL becomes regulated by the FCA and continues to grow in the U.K., the bar for trust and transparency will only rise, and we think that’s a good thing,” PayPal’s El-Emary said in the release. “For businesses, it means customers will increasingly gravitate toward payment options from names they recognize. PayPal’s Pay in 30 Days gives merchants a way to meet that demand, backed by a checkout experience their customers already know and trust.”
Meanwhile, the PYMNTS Intelligence report “Invest Now, Win Later: How Buy Now, Pay Later Became a Merchant Growth Strategy,” a collaboration with PayPal, found that pay later availability can influence merchant selection. The report showed that 38% of consumers said this factor influences where they order food, while 37% said it affects travel bookings.
In addition, the research found that 43% of shoppers said they would abandon a purchase if pay later methods were not available.
“If nearly half of prospective buyers are prepared to walk away because financing is missing, retailers must reconsider where flexible payment options appear within the customer journey rather than treating them as a final checkout feature,” PYMNTS reported last week.
The post PayPal Expands UK BNPL Offering Ahead of New Regulations appeared first on PYMNTS.com.
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