Shortly after Apple revealed its Pay Later feature, the Buy Now Pay Later market is now looking for ways to launch its own version.
On Wednesday, June 15, one of the most used online payment systems, PayPal has, introduced its own buy now, pay later service to follow the launch of its Pay in 4 installment program.
PayPal's Buy Now Pay Later Program
PayPal's new offering, called PayPal Pay Monthly, is designed to give customers a more flexible and easier way to pay.
Initially, customers will have to pay off their purchases for six weeks, but now, users can divide the cost into monthly payments of six months to 24 months maximum, according to Apple Insider.
PayPal customers can also use the PayPal Pay Monthly service to make larger purchases.
The new installment plan option will be available at checkout when the customer pays using their PayPal account, but it will still be subject to approval.
The application will be open for purchases ranging from $199 to $10,000.
According to Engadget, the Pay Monthly feature will assess an interest rate of between 0% to 29.99%.
Apple's Pay Later
Meanwhile, Apple is preparing to introduce its Apple Pay Later service that will work in the same way as PayPal's Pay in 4, and it will be incorporated into Apple Pay checkouts.
Similar to Pay in 4, Apple Pay Later is limited to purchases of up to $1,000. But, Apple will vet the customer before giving them the option, unlike PayPal, wherein it gives the customer the option to divide the cost into four equal payments without having to wait for the approval.
The tech giant will leverage fraud detection technologies paired with iCloud to approve a user for the Pay Later feature, according to 9to5Mac.
What is a Buy Now, Pay Later Scheme?
The Buy Now, Pay Later or BNPL is a term for schemes that allow users to make a downpayment on a product and take it home the same day.
The remaining balance is then paid off via regular installments. Some of the installments are interest-free, while others have interest payments.
Several businesses have offered the BNPL scheme for decades, but app-based ones like PayPal and Apple, which can be used for any online purchases, are new.
PayPal's Answer to Apple's Pay Cash
This not the first time that PayPal has responded to Apple's new feature. In 2018, the online payment service redesigned its app for iOS to make it easier for users to send and request money.
This update is PayPal's answer to Apple's Pay Cash feature.
The payment service added Send and Receive buttons at the front and center of the app, so its customers can easily spot it.
PayPal has also streamlined its app design to make it easier for users to see their balance, get notifications about the activities in their account, and move money from one account to another.
Also, the company has made it easier for customers to add their photos and personalize their contact lists on their accounts. This way, users can be more confident about to whom they send the money.
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Written by Sophie Webster
