PayPal, a major global payments platform, has introduced Pay Monthly, its latest buy now pay later (BNPL) product.
The payment giant said the new product will enable consumers in the United States to make large purchases between $199 and $10,000.
Repayment can be spread out over a 6 to 24 month period, it added.
PayPal, which also pointed out that the new offering is subject to credit approval, announced the launch of Pay Monthly on Wednesday.
The unveiling of the new offering comes days after the payments platform said it would support the native transfer of digital assets between PayPal, external wallets and exchanges.
It noted that Pay Monthly will give consumers greater flexibility and even more choices to pay for the items they want and need.
The multinational financial technology company noted that Pay Monthly continues its tradition of transparent point-of-sale lending products.
“Once a customer selects Pay Monthly, they will complete an application at checkout and, if approved, will be presented with up to three different plans of varying lengths with risk-based annual percentage rates (APR) ranging from 0%-29.99%. Customers can then compare and select the option that best suits their budget,” PayPay explained.
PayPal, which saw an 8% jump in its first quarter earnings for 2022, also said that customers can repay their debts using either their debit cards or bank accounts.
Moreover, the payments provider pointed out that customer purchases are backed by PayPal Purchase Protection.
Additionally, consumers can manage and track their payments on the PayPal app and online, it added.
"Pay Monthly builds on our commitment to deliver leading payment solutions that offer customers choice to ensure checkout matches their needs and budgeting preferences,” said Greg Lisiewski, the Vice President of Shopping and Pay Later at PayPal.
Lisiewski explained that how consumers look to pay for larger purchases is evolving; hence the need for flexible payment options.
Availability for Merchants
Speaking further on the new product, PayPal said Pay Monthly will be automatically available for merchants at no additional cost or risk.
On top of that, the new product does not require complex back-office integration to be added as a payment option, it said.
Furthermore, PayPal explained, “Similar to Pay in 4, merchants can also add dynamic messaging to deliver relevant Pay Later options that are presented early in the customer's shopping journey to let them know they will have the option to spread out payments at checkout.”
