PayPal Buy Now, Pay Later: 2024 Review
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Our Take
4.0
PayPal Pay Later plans have zero fees, purchase protection and no interest for Pay in 4, but they lack some consumer-friendly features.
Pros
- No fees.
- Offers payment plan with zero interest.
- Monthly financing available.
- Includes purchase protection for eligible purchases.
Cons
- Available for online shopping only.
- No option to reschedule payment.
- Doesn’t pause account after missed payment.
Full Review
PayPal’s “buy now, pay later” payment plans are available for online purchases only, and they have zero fees.
PayPal Pay in 4 lets you split up a purchase over six weeks with no interest, while PayPal Pay Monthly comes with terms up to two years and charges interest.
» COMPARE: The best buy now, pay later apps
PayPal Pay Later at a glance
PayPal Pay in 4 | PayPal Pay Monthly | |
Payment structure | Pay in four installments, due every two weeks. | Pay monthly, with terms up to 24 months. |
Amount due at checkout | First installment (one-fourth of the purchase price). | None. |
Interest | No interest. | 9.99%-35.99%. |
Availability | Available for online purchases of $30 to $1,500. | Available for online purchases of $199 to $10,000. |
How does PayPal Pay Later work?
PayPal Pay Later works by dividing the total cost of your purchase into smaller installments when you check out in the PayPal mobile app or at a store that partners with PayPal. There may be two payment plans to choose from: PayPal Pay in 4 and PayPal Pay Monthly.
If you go with Pay in 4, you’ll need to make the first installment at checkout. You’ll then be automatically enrolled in autopay, though you can turn this feature off later.
You can use a debit card, card credit or bank account to make payments, unless you choose monthly financing, in which case you can’t use a credit card. You can also make payments with your PayPal balance if you turn off autopay.
There's no penalty for making an early payment or paying off your balance in full before the due date for either Pay in 4 or Pay Monthly.
PayPal doesn’t charge any fees, including no late fees.
PayPal Pay in 4
PayPal Pay in 4 splits the total price of an online order into four equal installments, each due about two weeks apart, with the first payment due at checkout.
For example, if your total is $300, you’ll pay $75 at checkout. Then, you’ll have three remaining payments of $75, due every 15 days until you’ve paid in full. There’s no interest for Pay in 4.
PayPal Pay Monthly
PayPal also offers monthly payment plans for larger online purchases of $199 to $10,000, with repayment terms of 6, 12 or 24 months. These loans charge interest, ranging from 9.99% to 35.99% annual percentage rate. Rates as low as 4.99% may be available.
How to get approved for PayPal Pay Later
To be eligible for PayPal Pay Later, you’ll need to be at least 18 years old. You must also have a PayPal account in good standing or be willing to open a PayPal account to apply.
Pay in 4 isn't available if you live in Missouri or Nevada, and Pay Monthly isn’t available if you live in Alaska, Connecticut, Hawaii, Nevada or North Carolina.
Approval decisions are instantaneous and may depend on a few factors, like information from the credit bureaus and any past usage or history with PayPal.
Does PayPal check credit?
PayPal will conduct a soft credit pull when you apply for PayPal Pay Later. This doesn't affect your credit score, and there is no minimum credit score requirement to use PayPal Pay Later.
How to use PayPal Pay Later
Download the PayPal app
Users can download the PayPal mobile app to get started. You can shop directly in the app or use it to manage repayments.
Shop with PayPal online
You may also see the option to check out with PayPal at some retailers. You’ll fill out a short application and receive an instant decision.
Is PayPal Pay Later safe?
PayPal is a safe and reputable provider of BNPL loans. Weigh the pros and cons below to decide whether PayPal is the right fit for you.
Where PayPal stands out
No fees: PayPal is one of just a few BNPL providers that charge zero fees, including no fees for late or missed payments. Fees increase the cost of your purchase and can cancel out the benefits of using BNPL.
No-interest payment plan: PayPal’s Pay in 4 divides the cost of your purchase into smaller installments for zero interest. It’s hard to find credit for zero interest, especially if you have a fair or bad credit score (689 score or lower).
Monthly financing available: PayPal offers financing up to two years, which can help you budget for a large purchase you can’t afford outright. But since these plans charge interest, they may not be the right fit for everyone. If it's a nonessential purchase, consider saving up and paying with cash instead.
Purchase protection: PayPal extends its purchase protection program to BNPL purchases, so if you don't receive your item or it differs from its description, you may qualify for reimbursement from PayPal. This is a unique feature among BNPL providers that may give shoppers peace of mind when shopping online.
Where PayPal falls short
Online shopping only: PayPal’s BNPL payment plans are available for online purchases only. Almost all BNPL providers offer plans that work both online and in stores.
Can’t reschedule payments: If you’re short on cash for an upcoming installment, PayPal won’t let you reschedule the payment due date, which many BNPL providers do at least once per order. Though you won’t be charged a late fee, if your account becomes increasingly delinquent, your credit score could suffer.
Won’t pause your account: PayPal won’t automatically pause your account after a missed payment. Other BNPL providers offer this feature as a safeguard, since it prevents you from making additional purchases you can’t afford.
Expert take on PayPal
PayPal’s drawback as a BNPL lender is that it’s only available for online shopping, unlike the other big providers, which let you check out almost anywhere, online or in stores. But if PayPal Pay Later is available for your purchase, it’s pretty hard to beat, especially if you go with the Pay in 4, since there’s no interest or fees. Plus, shoppers will surely appreciate the name recognition and extra purchase protection.”
— Jackie Veling, Lead Writer, BNPL
Frequently asked questions about PayPal Pay Later
- What is PayPal Pay Later?
PayPal Pay Later is the name for PayPal’s “buy now, pay later” payment plans, which help you spread out the cost of your purchase over weeks or months.
- What credit score do you need for PayPal Pay Later?
There’s no minimum credit score requirement for PayPal Pay Later.
- How do I qualify for PayPal Pay Later?
You can qualify for PayPal Pay Later by having a PayPal account in good standing. PayPal may also check your credit score.
- Does PayPal Pay Later do a hard pull?
PayPal Pay Later doesn’t do a hard pull. Instead, PayPal does a soft credit check only, which won’t affect your credit score.
- Does PayPal pay later cost anything?
PayPal Pay Later doesn’t cost anything if you choose Pay in 4. If you choose Pay Monthly, you’ll pay interest.
Compare PayPal Pay Later with other BNPL lenders
PayPal’s Pay in 4 is similar to the pay-in-four plan offered by Affirm, which comes with zero interest and no fees. Like PayPal, Affirm also offers monthly financing, but with the possibility of zero interest.
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Alternatives to PayPal Pay Later
0% APR credit cards
If you have good or excellent credit (690 credit score or higher), you may consider a 0% APR credit card. These cards offer introductory periods of up to 21 months and charge no interest during that period. You may also receive a sign-up bonus or access to a rewards program.
Small personal loans
If you’re looking to fund a large, essential purchase, you could apply for a personal loan. Personal loans have fixed interest rates and longer repayment terms, and there are options for borrowers with fair or bad credit (689 credit score or lower).
You can pre-qualify for free with NerdWallet to see your loan options. Pre-qualifying doesn’t affect your credit score.
Find the Best Personal Loan
NerdWallet’s review process evaluates and rates “buy now, pay later” (BNPL) loan products from the top financial technology providers. We collect over 40 data points from each lender, verify the information with company representatives and compare the lender with others that seek the same customer or offer a similar BNPL product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to BNPL providers that offer consumer-friendly features, including: soft credit checks to pre-qualify, zero interest and minimal fees, transparency of rates and terms, flexible payment options, accessible customer service and built-in borrower protections. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies to classic BNPL loans, which divide payment into four equal installments, typically due over six weeks. Some providers offer other loan products with longer terms, which is factored into the rating process. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for buy now, pay later and our editorial guidelines.
