Frequently asked questions

What are installment payments?

How do I get Pay Later?

When do I get paid?

Is a credit check required for customers?

How do refunds work with installment payments?

What if a customer doesn’t pay on time or at all?

More ways to accept payments

We support businesses

just like yours

Every business needs a reliable partner. From secure payment processing to helpful business insights, we’re here for you.

Why Pay Later is

good for business

Increases order value

In the US, PayPal Pay Later average order values (AOVs) are approximately 20% higher than standard PayPal AOVs for SMBs.¹

Helps boost sales

Offering installment options can help drive conversion and customer loyalty.

Gets you paid up front

Receive complete payment when orders are processed and we’ll take care of billing.

Drives loyalty

67% of Pay Later users in all markets are repeat users.²

PayPal Pay Later helps convert and increase average order value

Approval rate

86%

PayPal Pay Later has an approval rate of approximately 86% in the US.³

Checkout conversion

62%

of PayPal purchasers say paying with Pay Later increased their likelihood to make a purchase.⁴

Preferred payment method

65%

of PayPal Pay Later users have abandoned a purchase because Pay Later options were not available

at checkout.⁵

Drive conversion with Pay Later messaging

Automatically promote relevant Pay Later offers on your site at key points of the shopping journey. Customers are more likely to buy if they know they can pay in installments—so you’re more likely to make a sale.

lift in sales after 3 months of adding Pay Later messaging for small and medium-sized businesses in the US.⁶

Add Pay Later Messaging

Simple integration

It’s easy to add Pay Later messaging through your eCommerce platform or custom site once you have PayPal Checkout.

Meet customers where they’re at

Pay Later messaging will dynamically present installment payment options based on product price while customers shop.

Useful business insights

Get reports that show sales, average order value, and customer info from installment payment purchases—available only when you add Pay Later messaging.

Automatic updates

Once you enable dynamic messaging, new Pay Later options are automatically added at checkout when available.

How PayPal Pay Later works for your customers

Shoppers are presented with a Pay Later offer

Dynamic messaging will automatically show the appropriate Pay Later offer: Pay Monthly⁷ or Pay in 4⁸

They choose Pay in 4

Customers make a down payment and then pay the balance in three bi-weekly, interest-free payments. You’ll get paid in full upfront.

Or they choose Pay Monthly

Customers apply and know within seconds if they’re approved for monthly payments at varying APRs. You’ll still get paid in full.

Easy to manage payments

Payments can be made automatically. Customers can review plan details online or in the app.

Installment payments are already available on these eCommerce platforms

Browse Solution Providers

Great for your customers and your bottom line

Compare our Pay Later features
For your business	Pay in 4	Pay Monthly
Payment in full at checkout
Integration	Included with PayPal Checkout	Included with PayPal Checkout
Seller Protection⁹

Compare our Pay Later features
For your customers	Pay in 4	Pay Monthly
Purchase amount	$30 to $1,500	$199 to $10,000
Number of payments	4 payments	6, 12, or 24 payments
Time between payments	1 down payment at purchase, and then every 2 weeks	Monthly
APR	0%	9.99 % - 35.99 % APR based on the customer. Option to fund 0% APR campaigns for additional cost.
Repayment method	Debit card, credit card, or confirmed bank account	Debit card or confirmed bank account
Purchase Protection¹⁰

“Offering PayPal Pay Later was just an easy choice...it gives people the opportunity get into our product without having to have all the cash up front.”

— Bryce and Tyler Koster, founders of splitboard bindings brand Karakoram

Read the article

Steps to get

installment payments

1. Sign up

It all starts with a PayPal Business account. If you already have a Personal account, it's easy to upgrade or create a new Business account.

2. Set up PayPal Checkout

Connect your PayPal account to your ecommerce platform or code your custom PayPal Checkout. If you already have PayPal Checkout, make sure you’ve upgraded to the latest version.

3. Enable dynamic messaging

To show Pay Later promotional offers to shoppers while they browse your site, enable Pay Later messaging.

Installment payments

Boost sales with

PayPal Pay Later.

Get paid in full at checkout while giving your customers the flexibility to pay in installments over time with no late fees.

Talk to an account specialist to get started, 1-855-787-1014.

Images are for illustrative purposes only.

Internal Data Analysis of 35,941 SMB across integrated partners and non integrated partners, November 2022. SMB internally defined as up to $250,000 in annual estimated ecommerce online payment volume. Pay Later data inclusive of transactions using Pay in 4 or Pay Monthly.

PayPal internal data from January 2022 - December 2022 for all markets. Repeat users have used a Pay Later installment option for more than one purchase.

PayPal internal data from August 2022 - June 2023.

⁴

Nielsen, commissioned by PayPal, Nielsen Attitudinal Survey of USA (June 2023) with 2,001 recent purchasers (past 4 weeks) from SMB merchants, including 643 PayPal transactions without BNPL & 357 PayPal transactions with BNPL. PayPal BNPL includes Pay Monthly & Pay In 4. PayPal without BNPL includes ‘pay full amount at time of purchase’ and ‘credit’ purchases.

⁵

Nielsen, commissioned by PayPal, Nielsen Attitudinal Survey of USA (June 2023) with 2,001 recent purchasers (past 4 weeks) from SMB merchants, including 1,000 PayPal transactions & 1,001 non-PayPal transactions.Base N. PayPal BNPL (Pay Monthly / Pay In 4) users in the last 12 months = 845.

⁶

Analysis of small medium business retailers with PayPal Pay Later messaging, PayPal internal data from October 2020 - August 2023.

⁷

Pay Monthly is subject to consumer credit approval. Term lengths and fixed APR of 9.99-35.99 % vary based on the customer's creditworthiness. The lender for Pay Monthly is WebBank. PayPal, Inc. (NMLS #910457): RI Loan Broker Licensee. VT Loan Solicitation Licensee.

⁸

About Pay in 4: Loans to CA residents are made or arranged pursuant to a CA Financing Law License. PayPal, Inc. is a GA Installment Lender Licensee, NMLS #910457. RI Small Loan Lender Licensee.

⁹

Available on eligible purchases. Limits apply.

¹⁰

Purchase Protection is available on eligible purchases. Terms and limitations apply.