Pay Later: Our Guiding Principles

Jun 17 2022 | PayPal Editor

As a global leader in lending and financial services our customers are at the heart of everything we do. Our Guiding Principles for PayPal Pay Later bring this to light for our buy now, pay later products.

Our Principles support our commitment to doing right by our customers every step of the way. Our Principles are designed to protect our customers. Have a look and see how we’ve got your back when you choose PayPal.

Customers are the priority.
Our customers are at the heart of everything we do. We work to build long-term relationships based on trust with both the consumers and businesses using our products & services.

Responsible innovation and growth.
As a global payments leader with 11+ years of leadership in the buy now, pay later space and 20+ years in the payments space, we have developed proprietary data and models that enable us to offer transparent installment options to consumers while driving responsible innovation and growth.

Transparency from start to finish.
Our priority is providing transparency through the process from application to repayment to servicing and customer support, so consumers have the information they need to make informed payment choices that can meet their needs.

Caring for consumers’ financial wellbeing.
Our deep understanding of our customers’ transaction history helps facilitate informed decisions on loan approval using data from a variety of sources including information provided in the application, credit bureaus, and proprietary data such as spending history. We offer flexible ways to pay -from short term, interest-free options to longer term, predictable monthly payments (coming soon) -with convenient autopayments and no late fees. And customers can choose to pay off their loans in advance without any prepayment fees or penalties.

Confidence and protection.
We help our customers shop with confidence. Customers see their payment schedule up front, and they are not charged any application or late fees. All transactions using Pay Later offers are backed by the PayPal security that consumers and businesses know and trust1, and we cover qualifying transactions with PayPal Purchase Protection2 for added peace of mind. 


  1. When it comes to digital payments, PayPal is the most trusted brand to keep financial information secure. Source: TRC online survey commissioned by PayPal in April 2021 involving 5,000 consumers ages 18+ across US, UK, DE, FR, AU (among Millennial & Gen Z BNPL users (ages 18-40), US (n=214), UK (n=258), DE (n=262), AU (n=369), FR (n=157) 

    86% of US PayPal merchants surveyed agree that PayPal offers more secure transactions. Source: B2B International, commissioned by PayPal, Nov-Dec 2021, B2B International surveyed amongst 504 mid-market and large enterprises in US, UK, and DE during November/December 2021. LE defined as merchants with annual revenue >100M; Mid-market defined as merchants with annual revenue between 20M-100M. Base N: PayPal Users = 219
  2. Available on eligible purchases. Limits apply.See PayPal Purchase Protection terms and conditions.

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