According to new research by Forrester, which evaluated alternative payment acceptance from 100 leading retailers, 88 percent of retailers now accept at least one digital payment method and 26 percent offer an installment payment plan. Within those retailers, 83 percent of Forrester’s evaluated retailers accept PayPal.
Extending its suite of pay later solutions, PayPal has just announced a new interest-free, buy now, pay later installment payment solution. Called Pay in 4, the payment option will be available in U.S. consumers’ PayPal wallet allowing consumers to use Pay in 4 with most retailers. Retailers may also choose to integrate the feature on the product page at no additional cost.
“In today’s challenging retail and economic environment, merchants are looking for trusted ways to help drive average order values and conversion, without taking on additional costs,” said Doug Bland, senior vice president, global credit at PayPal. “At the same time, consumers are looking for more flexible and responsible ways to pay, especially online. With Pay in 4, we’re building on our history as the originator in the buy now, pay later space, coupled with PayPal’s trust and ubiquity, to enable a responsible and flexible way for consumers to shop while providing merchants with a tool that helps drive sales, loyalty and customer choice.”
Notably, PayPal currently has a network of 345 million global active merchant and consumer accounts and according to a study conducted by Comscore, has an 88.7 percent conversion rate — a score that is 82 percent higher than checkout without PayPal.
The Pay in 4 solution will be included in merchants’ existing PayPal pricing. At the same time, PayPal will enable retailers to get paid upon purchase while allowing consumers to pay for purchases over a six-week period.
An early adapter of the Pay in 4 program, Aldo Group said it has already experienced success with the financing options. “While shopping online, our customers care about flexibility, control, and seamless experiences,” said Gregoire Baret, senior director, omnichannel experience at Aldo Group. “Pay in 4 is built with these customer needs in mind, and it leverages the trust our consumers already have in the PayPal brand. We are excited to continue learning about the tools and technology that help our customers, especially in the lead-up to the holiday season.”
Pay in 4 will be available to consumers beginning in early Q4 of this year.
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