Why Pay Later is good for business

Increases order value

The PayPal Pay Later average order value (AOV) is 20% higher than the standard PayPal AOV for SMB retailers.1

Helps boost sales

Offering installment options can help drive conversion and customer loyalty.

Gets you paid up front

Receive complete payment when orders are processed and we’ll take care of billing.

Attracts repeat customers

79% of millennial and Gen Z buy now, pay later users are more likely to shop at a merchant again if offered a buy now, pay later option.2

PayPal Pay Later helps convert and increase the average order value

39 %
cart size increase and boost in conversion rates seen by merchants who use Pay Later.3
74 %
of buy now, pay later users say that seeing pay later messaging while shopping encouraged them to complete a purchase.4
72 %
of buy now, pay later users are more likely to complete a purchase if a buy now, pay later option is available.4

Drive conversion with Pay Later messaging

Automatically promote relevant Pay Later offers on your site at key points of the shopping journey. Customers are more likely to buy if they know they can pay in installments—so you’re more likely to make a sale.

66 %
of buy now, pay later users have abandoned a purchase due to not seeing a buy now, pay later option.4

Included with PayPal Checkout

It’s easy to add Pay Later messaging through your ecommerce platform or custom site once you have PayPal Checkout.

Meet customers where they’re at

Pay Later messaging will dynamically present installment payment options based on product price while customers shop.

Useful business insights

Get reports that show sales, average order value, and customer info from installment payment purchases—available only when you add Pay Later messaging.

Automatic updates

Once you enable dynamic messaging, new Pay Later options are automatically added at checkout when available.

How PayPal Pay Later works for your customers

Shoppers are presented with a Pay Later offer

Dynamic messaging will automatically show the appropriate Pay Later offer: Pay Monthly⁵ or Pay in 4⁶

They choose Pay in 4

Customers make a down payment and then pay the balance in three bi-weekly, interest-free payments. You’ll get paid in full upfront.

Or they choose Pay Monthly

Customers apply and know within seconds if they’re approved for monthly payments at varying APRs. You’ll still get paid in full.

Easy to pay and manage

Payments can be made automatically. Customers can review plan details online or in the app.

Installment payments are already available on these ecommerce platforms

Great for your customers and your bottom line

Compare our Pay Later features
For your business Pay in 4 Pay Monthly
Payment in full at checkout
Integration​ Included with PayPal Checkout Included with PayPal Checkout
Price Included with PayPal Checkout at no additional cost. Explore pricing Included with PayPal Checkout at no additional cost. Explore pricing
Seller Protection7
Compare our Pay Later features
For your customers Pay in 4 Pay Monthly
Purchase amount $30 to $1,500 $199 to $10,000
Number of payments 4 payments​ 6, 12, or 24 payments​
Time between payments 1 down payment at purchase, and then every 2 weeks Monthly​
APR 0% 9.99% to ​35.99% and as low as 4.99% from time to time.
Repayment method​ Debit card, credit card, or confirmed bank account​ Debit card or confirmed bank account​
Purchase Protection​8

Join popular brands that offer PayPal Pay Later

Steps to get installment payments

1. Sign up

It all starts with a PayPal Business account. If you already have a Personal account, it's easy to upgrade or create a new Business account.

2. Set up PayPal Checkout

Connect your PayPal account to your ecommerce platform or code your custom PayPal Checkout. If you already have PayPal Checkout, make sure you’ve upgraded to the latest version.

3. Enable dynamic messaging

To show Pay Later promotional offers to shoppers while they browse your site, enable Pay Later messaging.

Frequently asked questions

We support businesses just like yours

Every business needs a reliable partner. From secure payment processing to helpful business insights, we’re here for you.

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