Pay Later: the next big advancement in frictionless checkouts

Nothing puts the brakes on an otherwise enjoyable shopping experience like a checkout process that is overly time-consuming or complex. That’s especially true for shoppers who are looking for payment options for their purchase. These are the customers who get redirected to other sites or have to fill out long forms. It’s enough friction to start a campfire.

Pay Later has Officially Gone Frictionless

With PayPal Pay Later, you can give customers all the benefits of a flexible payment solution, but without the friction they experience with traditional point of sale financing options.

Payment options include:

Pay in 3: A new short-term, interest-free instalment offering that lets customers pay for purchases in 3 payments, while businesses get paid up front.

PayPal Credit:¹ Deferred financing offers for larger purchases. Customers can pay over time while businesses get paid up front.

A Delightful Experience for Shoppers

Pay Later offers take the friction out of financing, giving shoppers benefits such as:

Seamless Shopping Experience. PayPal has more than 32.5 million active accounts in the UK. Since these shoppers already have an account with PayPal, the approval process for Pay Later products is simple. This decision-making process evaluates shoppers’ financial positions using a combination of the information collected at application, including, where appropriate, external data from credit reference agencies, and usage and history with PayPal.

A clear and easy budget-efficient option. With 63% of UK consumers claiming to be thinking more carefully about what they spend their money on², they are looking for new ways to help manage their budget. 45% of consumers say they can manage their income and expenses better if they can buy things now but pay for them later³.

Financing for Every Price Point

Pay Later lets shoppers take advantage of financing options for nearly any order amount, with the choice of Pay in 3 for smaller purchases and PayPal Credit’s special financing offer for larger purchases.

Retailers can add dynamic messaging on product pages right next to price points to highlight Pay Later options early in the buying journey, helping to encourage shoppers to complete checkout.

A Smooth Experience for Retailers

Pay Later offers also have several key advantages for retailers, including:

Simple, Up-front Payments. Pay in 3 customers get the flexibility to pay for their purchases over time while you get paid in full, up front.

A seamless shopping experience. You can add either Pay in 3 or, if you have the necessary FCA permission, PayPal Credit to your website⁴ across all pages of the consumer buying journey, from home page to checkout, to connect with over 32.5 million PayPal consumers in the UK.

Increased conversions and higher average spend. Offering Pay Later options can significantly improve your conversions: Research shows that 57% of consumers are more likely to make a purchase at a retailer offering interest-free payment options³.

More than ever, consumers are being drawn to flexible financing options. With PayPal Pay Later, you can take the friction out of the checkout process, while giving your customers extra buying power.