Lately PayPal Holdings Inc has launch its “buy now, pay later” (BNPL) option in Australia. BNPL already works in the United States and Britain. This service which is interest-free “Pay in 4” service to its more than 9 million customers in Australia, where regulation of the fast-growing space is thin compared to other consumer finance categories, while adoption is higher than other markets.
The arrival of PayPal presents a serious new competitor for Afterpay and Zip Co Ltd, who lead the domestic market, as well as Sweden’s Klarna which is backed by a small shareholding from Australia’s largest bank.
Also called Pay in 4, this service is available to tangible/physical goods merchants and many intangible/digital goods merchants. There are some restrictions on intangible goods merchants including Get Rich, Non-Profit, Services – Other, Website Services, No True Industry.
According to PayPal ‘Pay in 4’ will be unavailable for gaming, gambling, digital gift cards or for certain transactions including peer-to-peer transfers.
This means just choose Pay in 4 at checkout at millions of online stores and split your payments in 4 – one every two weeks. It’s interest free, has no impact on your credit score and is backed by PayPal.
Remember you are offered the same security and purchase protection you already enjoy from PayPal when using this service.
You will make a small downpayment after the purchase and then rest of your pay later payments will be made every two weeks
You can easily track the payment at the Paypal site or Paypal app
Pay in 4 is a feature that lets you split your purchase into 4 payments, with the down payment due at the time of transaction and 3 subsequent payments made every 2 weeks thereafter.
Note that you need to be at least 18 years of age to apply. You must also have a PayPal account in good standing or open a PayPal account in order to apply.
Pay in 4 is not available for certain merchants and goods. This means not all merchants are available for this service in Australia. If you choose Pay in 4 as your payment method when you check out with PayPal, you will be taken through the application process. You will get a decision instantly but not everyone will be approved based on their internal checks.
Just choose to pay with PayPal when you shop online and if it is an eligible transaction, you will see Pay in 4 as one of the available payment methods. Simply apply for a Pay in 4 plan in just a few steps, get an instant decision, and finish checking out.
You can use Pay in 4 for eligible shopping cart values between $30 to $600.
You must read the loan agreement of your Pay in 4 plan before you submit your application. You will see the link to the loan agreement when you choose to apply for Pay in 4 at checkout. You will also have the option to download the loan agreement.
Once your plan starts, Paypal will send you an email containing important information about your Pay in 4 plan, including how to locate your loan agreement.
There are no fees for choosing to pay with Pay in 4, however if you are late with a payment you may be charged a late fee.
Your individual plan will last a little over 6 weeks in total. The down payment will be due at the time of the transaction and 3 subsequent payments will be taken every 15 days thereafter.
Pay in 4 is available to use at selected merchants where PayPal is accepted. Transactions can be made in all currencies that PayPal supports, not just AUD. For transactions not in AUD, PayPal will automatically convert the transaction amount to AUD at checkout before providing you with your Pay in 4 plan. Currency conversion charges will apply as set out in your PayPal User Agreement.
Now that you have decided to buy now and pay later and you have used Pay in 4 option at your online transaction using Paypal you are worried how your pay later payments will be deducted.
After your down payment, your 3 subsequent repayments will be taken automatically from the debit or credit card you provided at the time of your application.
You can see how much you owe and this can be done by simply logging into your PayPal account, go to Pay in 4, and click on the specific Pay in 4 plan you want to see. The amount you still owe will be under “Remaining.”
To see tha amounts of your payment in your PayPal account, go to Pay in 4, and click on the specific Pay in 4 plan you want to see. There you can see the amounts of your previous payments in your Plan Activity. You can also see the amounts of upcoming payments by clicking “See Upcoming Payments.”
You can make extra or unscheduled payments if you want. On your PayPal account, choose the Pay in 4 plan you want to pay and click Make a Payment. Then, you can make an unscheduled or extra payment that will be applied to that Pay in 4 plan.
Also if you want you can pay off the entire Pay in 4 plan at once. In your PayPal account, choose the Pay in 4 plan you want to pay off and click Make a Payment. Then you can make an unscheduled payment to pay off the entire Pay in 4 plan.
Note that you can pause or suspend my Pay in 4 payments. Once you agree to the terms of your Pay in 4 plan and your payments begin, you cannot pause, suspend, or skip your payments.
If your payment didn’t go through then there might be several reasons for it that Paypal may not have been able to complete your scheduled payment, including if there were insufficient funds on your debit or credit card.
You can updated your debit or credit card for future repayments. If you want to make future payments with a new card, you can change your payment method by logging into your PayPal account, going to Pay in 4 and selecting the Pay in 4 plan you want to change. There, you can click “Change” under “Payment Method” to update your information or choose a new way to pay.
If your debit / credit card will expire before your Pay in 4 plan ends, you can update your card information by following the same steps (above) or update your information in your PayPal wallet by logging into your PayPal account, clicking “Wallet,” choosing the card you want to update and click “Update Card.”
Your Plan Activity is always up to date on the Pay in 4 section of your PayPal account, so any payments you make should appear there immediately.
Finally remember even if you have opened a dispute with Paypal you need to continue making repayments when due while Paypal investigates your dispute to avoid a late fee being applied.