What are installment payments?

Installment payments let shoppers split a purchase into smaller, scheduled payments over time instead of paying the full amount up front. PayPal offers two installment payment options: Pay in 4 (four interest-free biweekly payments on purchases up to $1,500) and Pay Monthly (3 to 24 monthly payments on purchases from $49 to $10,000).

Is a credit check required for installment payments?

PayPal installment payments use two different credit review processes. Pay in 4 may require a soft credit check that does not affect the customer's credit score.

How do refunds work on installment payments?

When a customer returns something they purchased with Pay in 4 or Pay Monthly, use our standard refund process and we’ll provide a credit to the customer.

What if a customer doesn’t pay on time or at all?

You'll get paid in full once you capture the transaction, so there's no additional risk to you if a customer doesn’t pay on time or misses a payment.

Is 0% APR financing available for customers?

Pay in 4 is always interest-free. For Pay Monthly, eligible merchants can fund 0% APR campaigns at an additional cost.

How much do installment payments cost merchants?

Offering PayPal installment payments costs merchants {{merchantFees.domesticTransactions.payLaterPercent}} + {{merchantFees.commercialFixedFees.commercialUSDSymbol}} per transaction with no monthly fees and no setup fees. You only pay when you make a sale. High-volume businesses can contact sales for custom pricing. There are no additional fees to customers for Pay in 4, which is always interest-free.

How does PayPal Pay Later work for merchants?

Once a customer completes a Pay Later transaction, you receive full payment up front. PayPal handles repayment collection, so there's no additional risk to you if a customer misses a payment.

Installment payments

Boost sales with Pay Later

Offer shoppers installment payments—Pay in 4 and Pay Monthly¹—and get paid up front.

Get in touch, 1-855-787-1014.

93 %

higher average order value (AOV) than the standard PayPal AOV for enterprises²

62 %

higher AOV than the standard PayPal AOV for small businesses³

Connect with

high-value shoppers

High repeat buyers

95% of Pay Later users are likely to make another Pay Later purchase.⁴

High approval rates

90M+ PayPal users globally are highly likely to be approved for Pay Later short-term installment offers.⁵

High order value

When consumers choose to pay in installments, their average order value is more than 80% higher than a standard PayPal transaction.⁶

Turn browsers into buyers

Show personalized messaging for Pay Later offers while your customers browse, shop, and check out. They’ll get a flexible way to pay. You’ll increase your sales.

Add Pay Later Messaging

29 %

increase in PayPal sales using Pay Later messaging and/or the Pay Later button⁷

11 %

increase in PayPal sales using only Pay Later messaging⁸

Add dynamic messaging on your homepage and category pages to let visitors know they can enjoy now and pay over time.

Give customers browsing your product pages flexible financing options. Dynamic messaging will automatically show the relevant Pay Later offer.

At checkout, remind your customers they have flexible payment options.

Close the sale with Pay Later offers tailored to your shoppers.

How installment payments work

Pay Later effortlessly completes and complements your checkout stack, giving customers additional flexibility in their purchase experience.

Add Pay Later messaging to your site

Your customers see installment payment offers while browsing their favorite products.

We’re already on these eCommerce platforms

It’s easy to add Pay Later to your checkout. Connect your store and start selling.

Browse solution providers

Pay Later

delivers results

Whisker almost doubled their order values with Pay Later

“PayPal Pay Later has been really great for our business, and we continue to feature that more and more.”

—Jacob Zuppke, President and CEO

Read Case Study

98 %

increase in AOV with PayPal Pay Monthly⁹

25 %

of Whisker customers use flexible options like PayPal Pay Later¹⁰

“Offering PayPal Pay Later was just an easy choice...it gives people the opportunity to get into our product without having to have all the cash up front.”

— Bryce and Tyler Kloster, founders of splitboard bindings brand Karakoram

Read Case Study

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Great for your customers.

And your bottom line.

For-your-business
For your business	Pay in 4	Pay Monthly
Payment in full at checkout
Integration	Included with online checkout	Included with online checkout
Seller Protection¹¹

For-your-customers
For your customers	Pay in 4	Pay Monthly
Purchase amount	Up to $1,500	$49 to $10,000
Number of payments	4 payments	3, 6, 12, or 24 payments
Time between payments	1 down payment at purchase, and then every 2 weeks	Monthly
APR	0%	9.99 – 35.99% APR based on the customer. Option to fund 0% APR campaigns for additional cost.
Repayment method	Debit card, credit card, or confirmed bank account	Debit card or confirmed bank account
Purchase Protection¹²