PayPal’s new interest-free ‘Pay in 4’ instalment solution
Digital payments giant, Paypal announced in a recent that it will be launching , a new short term instalments scheme set to launch in the United States later this year. The instalment solution will be interest-free for customers and is set to join PayPal’s growing line of Pay Later solutions. Pay in 4 is designed to help merchants push conversion, revenue and customer loyalty while taking on no extra risk or fees themselves by being paid upfront.
The company reports that 56% of people say they prefer to pay a purchase back with instalments rather than a credit card. With names like and becoming common at many online shopping checkouts across the UK and Europe, PayPal has jumped on the Pay Later trend at the prime time to expand it into the US further.
"In today's challenging retail and economic environment, merchants are looking for trusted ways to help drive average order values and conversion, without taking on additional costs. At the same time, consumers are looking for more flexible and responsible ways to pay, especially online," said , SVP, Global Credit at PayPal. "With Pay in 4, we're building on our history as the originator in the buy now, pay later space, coupled with PayPal's trust and ubiquity, to enable a responsible and flexible way for consumers to shop while providing merchants with a tool that helps drive sales, loyalty and customer choice."
Pay in 4 will be available to customers making purchases between $30 and $600, and can split the payment over six weeks. The product will integrate with the existing PayPal wallet within its app, with re-payments being seamless and automatic. With more than 80% of 100 leading US retailers surveyed using the PayPal platform and 54% of consumers more willing to buy when a business accepts PayPal, the payments firm will be working to connect merchants and customers more than ever. Pay in 4 will become available to consumers in early Q4 this year on qualifying purchases - keep an eye out.
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG