PayPal has launched a new feature in the UK allowing customers to make purchases over three, interest-free payments.
The new PayPal Pay in 3 feature can be used for purchases between 45 and 2,000 pounds and will appear directly in customers’ PayPal wallets.
Businesses will not have to pay any extra fees to enable the new feature, and PayPal will pay them upfront for the full cost of the purchase, the company said.
In 2019, there was a 39 percent year-on-year increase in the proportion of buy now, pay later payments in the UK, according to PayPal. This is expected to double by 2023.
“During the coronavirus pandemic, we have seen the number of people in the UK shopping online increase dramatically,” Rob Harper, UK director of enterprise accounts at PayPal, said in a statement. “At the same time, many more consumers are looking to spread the cost of those purchases.
“We will continue to support 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.”
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