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PayPal Adds Pay-Later Option in U.S.

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Ecommerce and payments solution Digital River has added a new pay-later option for its U.S. clients using PayPal, dubbed Pay in 4 from PayPal.

Pay in 4 with PayPal allows customers to pay for purchases between $30 and $600 in four interest-free payments, while the merchants get paid in full up front. Pay in 4 is now included in Digital River’s PayPal checkout integration at no additional cost.

Buy now, pay later options are becoming increasingly popular as consumers demand more flexible payment options.

“After the 2008 financial crisis, we observed a generational shift away from credit and toward debit,” said Alex Fisher, VP of Retail at Afterpay in the latest Retail Touchpoints Retail Remix podcast. “Consumers want to spend their own money. They’re debt-averse, and they’re wary of traditional credit products, which can be interest-bearing and can drive them into a revolving cycle of debt. So these millennials and Gen Z’s are saying, ‘I want to spend my own money. I want to use a debit card and not a credit card,’ but they want the flexibility of being able to pay over time that traditional credit does afford.”

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A recent study commissioned by PayPal and conducted by Logica Research found that 64% of consumers say they are more likely to make a purchase at a retailer that offers interest-free payment options.

“With such strong consumer interest in pay-later options, Digital River is pleased we could offer our clients PayPal Pay in 4 as soon as it became available,” said Eric Christensen, Chief Payment Officer and VP of Product at Digital River in a statement. “Shoppers want control over how they pay and how that affects their finances.”

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