PayPal launches Australia’s only no-fee buy now, pay later offering for consumers, PayPal Pay in 4
13 Jul 2021
Free of any PayPal fees for Australian consumers – no interest, no late payment fees and no sign-up fees
We are launching with no late fees in Australia because we believe it’s the right thing to do for our customers and will deliver a better consumer experience.
  • New BNPL service now available to eligible PayPal Australian customers across its base of 9+ million active accounts
  • Free of any PayPal fees[i] for Australian consumers – no interest, no late payment fees and no sign-up fees
  • Available for use at millions of online stores – almost everywhere you see the PayPal ‘button’
  • Providing more choice and flexibility with the PayPal security and protections Australians know and trust

PayPal today is announcing that PayPal Pay in 4 is now available to eligible customers in Australia. The new no-fee buy now, pay later (BNPL) solution is designed to give consumers greater choice and flexibility in how they pay.

Announced in March, PayPal made some key updates to PayPal Pay in 4 ahead of the consumer launch:

  • Always planned to be interest-free for consumers, there are now also no late payment fees in Australia, making PayPal Pay in 4 free of any PayPal feesi for Australian consumers.
  • The minimum value for PayPal Pay in 4 purchases has been dropped to $30 from $50. Consumers can split the cost of eligible purchases[ii] between $30 and $1,500 into four interest-free payments, consisting of an initial payment and three automatic fortnightly instalments.

PayPal, which has over 9 million active accounts in Australia, made the changes to deliver a more customer-centric solution. Recent research commissioned by PayPal* found that while almost all Australian online shoppers (96%) are aware of BNPL, more than half (55%) have not used BNPL. Late fees were a key factor, with 50% saying they would not use a buy now, pay later service with “high late fees”.

“We are launching with no late fees in Australia because we believe it’s the right thing to do for our customers and will deliver a better consumer experience. We are backing the strength of our systems to determine consumer suitability for PayPal Pay in 4 and we believe we have the right measures in place to support our no late fees approach,” said Andrew Toon, General Manager, Payments, PayPal Australia.

“Our business model does not rely on late fee revenues and we believe that many people who miss a payment do so by mistake, not design. By removing late fees, we are providing our Australian customers with a secure buy now, pay later service without the risk of being penalised for late payments.”

To evaluate suitability, PayPal will predominantly use its own data and analytics engines and, when required, will run credit checks with an external credit bureau to assess whether PayPal Pay in 4 is a suitable option for the customer. PayPal Pay in 4 will only appear as an option at checkout for consumers who have a PayPal account in good standing and for eligible purchases valued between $30 and $1,500.

Available almost everywhere you see the PayPal ‘button’

PayPal Pay in 4 is accessible to consumers in two ways. When an eligible consumer pays using the standard PayPal ‘button’, it will appear at checkout in the PayPal wallet as a payment option. Businesses can also present PayPal Pay in 4 as a distinct payment option that’s directly ‘clickable’ on their website.

As PayPal Pay in 4 is a payment option within the PayPal wallet, it will be available for consumers to use at hundreds of thousands of Australian and millions of global online stores,ii almost everywhere PayPal is accepted.

“Our primary driver is to make the PayPal wallet the most versatile and useful digital wallet available by giving more payment choice and flexibility to our customers while maintaining the highly secure processes they know and trust,” said Andrew Toon.

Highly secure with Buyer Protection

Security is a key concern for many Australians, with three in five (60%) online shoppers saying they would abandon a BNPL purchase if they had security concerns.

The trusted security and protections offered by PayPal apply for transactions made using PayPal Pay in 4. Eligible purchases are covered by PayPal’s Buyer Protection, meaning that if a product does not arrive PayPal can refund the full purchase price, including delivery.

PayPal is currently Australia’s most trusted online payments brand with 71% of Australian online shoppers saying they trust PayPal to protect them should something go wrong with their online purchases.

For PayPal business customers

PayPal Pay in 4 is available at no additional cost[iii] to PayPal business customers, beyond their existing account arrangements. The buy now, pay later solution is automatically included with PayPal Checkout integrationii and Braintree integrations that use PayPal’s latest JavaScript Software Development Kit.

With a single integration, PayPal business customers can also add PayPal Pay in 4 messaging to their site, so consumers are aware of their flexible payment options. PayPal Pay in 4 messaging will dynamically show the individual instalment amounts based on what the customer is browsing or purchasing so consumers will know what each repayment will be. This dynamic messaging can be presented early in the shopping journey, delivering relevant, in-context pay later options from the homepage to product pages, to checkout.

Businesses also benefit from PayPal’s advanced decisioning process to prevent fraud while underwriting shoppers and they will be covered by PayPal’s Seller Protection for eligible transactions.

PayPal business customers and partners can learn more about PayPal Pay in 4 and register their interest on the PayPal Australia website.

Consumers can learn more about PayPal Pay in 4 here.


[i] Subject only to currency conversion fees on international purchases if applicable.

[ii] PayPal Pay in 4 will not be available for certain purchases including gambling, cryptocurrency trading, person-to-person transfers, not-for-profit donations, CFD and Forex. It will be available as an option in the PayPal wallet for customers with accounts in good standing, who have met eligibility criteria and are subject to suitability checks.

[iii] PayPal business customers must be on the latest Java Script Software Development Kit for PayPal Checkout. If not, they can upgrade to the latest version of PayPal to access the PayPal Pay in 4 solution as documented here.

For further information: Eileen Ho (Edelman for PayPal Australia) E: paypal@edelman.com T: 0490 460 283
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