Summary
PayPal announced a change to its "buy now, pay later" services, offering 5 percent cash back on eligible purchases through the end of 2025. This is intended to help shoppers manage financial stress, especially during the holiday season. The company is expanding its monthly payment option for in-store purchases in the U.S.
Key Facts
- PayPal's cash back offer applies automatically to eligible purchases in-store and online until December 31, 2025.
- Two main "buy now, pay later" options are available: "Pay in 4" for smaller purchases and "Pay Monthly" for larger ones with interest.
- "Pay in 4" lets shoppers divide payments into four equal parts without interest.
- "Pay Monthly" allows larger purchases to be paid off monthly, with fixed interest rates ranging from 10 to 36 percent.
- PayPal plans to expand the "Pay Monthly" option to in-store purchases in the U.S.
- Over 80 percent of PayPal users plan to use "buy now, pay later" during the holiday season.
- Surveys suggest many American shoppers feel financial stress and are turning to "buy now, pay later" services more than before.
- Some experts warn this trend could lead to serious debt if not managed carefully.
