If you want PayPal to lend you money to fund a purchase and pay it back in four installments, you can now do so without paying a dime.
PayPal, which claims 12.8 million “Active consumers” in France, launched last June a payment solution in four installments. Now, this option is available at no cost. It can be applied to purchases ranging from 50 to 2000 euros.
Concretely, how does it work? PayPal loans you the money that allows you to pay for the business or site from which you made a purchase. “Merchants have no additional costs associated with adding 4X Payout at no cost and receive full payment as normal. PayPal takes care of all the elements relating to the payment in 4X with the purchaser »PayPal explains in a statement. The option, open in France, does not seem to have any border, since it is open to “Eligible French and foreign merchant sites”.
The first monthly payment is taken at the time of purchase, then you repay the amount due in three installments spread over 3 months. The novelty is that before, if PayPal recovered 2.1% of the amount of the purchase (with a maximum of 20 euros) in the form of fees, it is now over.
To know if the option is available, nothing could be simpler: when buying online, you must choose to pay with PayPal, and there, a payment option in 4 installments will be offered if you are eligible. Once the payment has been launched, you will be able to consult your upcoming installments in a tab provided for this purpose. An amount that remains to be repaid should be indicated under the word “Remaining”.
Not for everybody
Does this mean that PayPal lends money to everyone? No, certainly not. The site reserves the right to accept or not, a bit like for a micro-credit. “The financing verification is done quickly and if approved, the consumer can directly confirm the payment in installments”, details the site in a press release. In addition, in the event of late payment, there will be a charge of 8% of the amount of the refund not made. For example, in the event of a default of 200 euros, PayPal will ask you for 16 euros.
This is undoubtedly good news for small traders who would agree to be paid via PayPal. Payment in installments can indeed be complicated to set up, and the possibility of going through a third party will facilitate the purchase.