The new PayPal product will appear as an option at checkout for consumers who have a PayPal account in good standing and for eligible purchases valued between $30 and $1,500. The firm says it will predominantly use its own data and analytics engines and, when required, will run credit checks with an external credit bureau to assess whether customers can afford the loan.
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PayPal debuts no-fee BNPL product in Australia
Andrew Toon, general manager, payments, PayPal Australia, says: “Our business model does not rely on late fee revenues and we believe that many people who miss a payment do so by mistake, not design. By removing late fees, we are providing our Australian customers with a secure buy now, pay later service without the risk of being penalised for late payments.”
