PayPal is introducing a new microloan with zero sign-up fees and interest fees.
Pay in 4, a new PayPal payment option, lets you pay an online purchase in four bi-weekly installments. The whole deal is a low-risk microloan that PayPal introduced to make your purchases on TVs, laptops and other online shopping much easier.
With the pandemic adding problems to your financial crisis, PayPal is offering a new mode of payment to break down bills into smaller payouts. Pay in 4 gives you two months to complete your payment. Here is how you can start using this feature:
How to Use PayPal: Pay in 4
PayPal requires a valid and active account connected to a debit or credit card to operate the Pay in 4 features. Also, Pay In 4 is only available for purchases around $30 to $600. Lastly, you could only use Pay in 4 on participating stores. PayPal lists some of them here.
YouTuber "How To Do It All" posted a three-minute video on the walkthrough process of using Pay in 4.
To use Pay in 4, you should:
- Shop on your online stores (as you normally would).
- When checking out your purchase, you could find a new option Underneath "PayPal Checkout" labeled "Pay Later." Click on that.
- You would be redirected to sign in to your PayPal account.
- Double-check your personal information and shipping address. Scroll down and on the "Pay Later" options, select the "Pay in 4."
- Click "Continue." You could now see the exact payment you are supposed to pay, along with its due dates. Again, click "Continue."
- Confirm your personal information by clicking "Agree and Apply."
- PayPal would now require you to select a card where your Pay in 4 payments would be deducted. Choose one of your pre-existing accounts or link a new card. Click "Agree and Continue."
- Congratulations, your order is now confirmed and purchased.
Pay In 4 and Your Credit Score
Before you could use the Pay in 4 features, PayPal said it will run a soft credit check on your accounts. This will not affect your credit score. PayPal simply aims to determine if you are capable of paying your purchases or not with their investigation.
Pay in 4 works like this: PayPal would pay for your purchase in full. However, it expects you to pay the total amount in installments. Note that when using the Pay in 4, the first payment due happens at the time of purchase. The following three installments would automatically be charged every 15 days.
PayPal is vague on its terms and conditions if a user fails to pay on the installments. However, there is a possibility that they would impose penalty fees, similar to what banks do. Therefore, it is better to keep the bills in mind and pay them on time.
With Pay in 4, you can now buy those items on your shopping list at an affordable price!
