Payments Dive
- Starting in October, new purchases in the U.S. made with PayPal’s buy now-pay later option won’t have any late fees if a consumer misses a payment, the company said in a press release today. Currently, late fees in the U.S. range up to $10 per missed payment, a spokesperson for PayPal said by email.
- The PayPal service, which lets U.S. consumers pay for a purchase in four installments, is interest-free to the users and any charges for merchants are tucked into their existing PayPal rates (so no extra charges for BNPL). PayPal makes money on the service, as do the merchants, because they’ve documented increased sales with the BNPL tool.
- The company is also jettisoning late fees on purchases in the United Kingdom and France in October, making a clean sweep of the penalties worldwide, the spokesman said. It never had late fees for purchases in Germany and Australia.