Frictionless Buy Now Pay Later: The Next Big Advancement in Frictionless Checkouts

Jan 25 2022 | PayPal Editorial Staff

The checkout process is often the most common point of friction for shoppers. Financing a purchase can compound the issue because it typically requires extra steps at checkout. But not anymore. Find out how PayPal’s Pay Later offers can enable a frictionless payment process, giving consumers the quick and seamless shopping experience they prefer.
Nothing puts the brakes on an otherwise enjoyable shopping experience like a checkout process that is overly time-consuming or complex. That’s especially true for shoppers who are looking to finance their purchase. These are the customers who get redirected to other sites or have to fill out long forms. It’s enough friction to start a campfire.

But now, retailers have an opportunity to take the friction out of consumer financing, thanks to PayPal Pay Later.

Buy now, pay later has officially gone frictionless

With PayPal’s Pay Later offers, you can give customers all the benefits of buy now, pay later, but without the friction they experience with traditional consumer financing options. Shoppers can check out in far fewer steps, especially if they already have an account with PayPal.

PayPal’s Pay Later offers include: 

Pay in 4: A short-term, interest-free installment offering that lets customers pay for purchases in 4 payments, while businesses get paid up front.1

PayPal Credit: Special financing offers for larger purchases. Customers can pay over time while businesses get paid up front.2

A frictionless experience for shoppers

PayPal’s Pay Later offers take the friction out of financing, giving shoppers benefits such as:

Seamless credit decisions. PayPal has more than 346 million active accounts worldwide. Since these shoppers already have an account with PayPal, the approval process is frictionless. New customers may require a soft credit check for Pay in 4 and a regular credit check for PayPal Credit, a process that usually takes only a few seconds.

A sense of security. When customers see the PayPal logo on a website, they feel confident about shopping there. In fact, when considering how to pay for an online or mobile purchase, 68% of consumers rate being able to pay with a brand they trust very important.3

Financing for every price point. PayPal’s Pay Later offers let shoppers take advantage of financing options for nearly any order amount, with the choice of Pay in 4 for smaller purchases and PayPal Credit’s special financing offer for larger purchases.

Retailers can add dynamic messaging on product pages right next to price points to highlight buy now, pay later options early in the buying journey, helping to encourage shoppers to complete checkout.

A frictionless experience for retailers

PayPal’s Pay Later offers also have several key advantages for retailers, including:

No additional cost or risk. Pay Later offers are included in PayPal Checkout at no additional cost. And since you’ll get paid up front, you won’t take on any additional risk.

A seamless shopping experience. You can add both Pay in 4 and PayPal Credit to your website with a single integration, along with dynamic messaging of Pay Later options.
Increased conversions and higher average spend. Offering Pay Later options can significantly improve your conversions: Research shows that 33% of PayPal Credit users would not have made their most recent purchase if PayPal Credit wasn’t offered.4

More than ever, consumers are being drawn to creative financing options. With PayPal’s Pay Later offers, you can take the friction out of the checkout process, while giving your customers extra  buying power.  

Explore how PayPal’s buy now, pay later options could reduce friction from your payment process. Talk to your account manager or call 855-477-5687 today. 

1About Pay in 4: Loans to California residents are made or arranged pursuant to a California Financing Law License. PayPal, Inc. is a Georgia Installment Lender Licensee, NMLS #910457. Rhode Island Small Loan Lender Licensee.
PayPal Credit is subject to consumer credit approval.
Logica Research, Commissioned by PayPal in May 2020 involving 2,000 U.S. consumers, half were PayPal Credit users and half were non-PayPal Credit users.
Online study commissioned by PayPal conducted by Logica Research, November 2018, conducting in US on 2,000 consumers, half were PayPal Credit users and half were non-PayPal Credit users.

The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.

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