PayPal Pay in 4 is a payment option that lets you split purchases you make at participating online stores into four payments. You pay a down payment at the time of sale and then one payment every two weeks for the next six weeks, for a total financing period of six weeks. Show
How Does Pay in 4 Work?To use PayPal’s Pay in 4 option, the seller must support PayPal payments. That means you can use this option at millions of online stores that support PayPal. Popular merchants include Best Buy, Target, Bed Bath & Beyond and Lands’ End. When you check out, choose PayPal and select the “Pay Later” option. That will let you pick the “Pay in 4” way to pay. You will be given a link to the loan agreement to review and agree to before submitting your application. You’ll also get an email from PayPal with the details of your plan once the purchase is complete. When you attempt to check out, PayPal will automatically make an approval decision in seconds so you can complete your purchase right away. To complete your purchase, you’ll have to pay the first payment as a down payment. The rest of the purchase amount is split into three interest-free payments, with one due every two weeks. You can manage and make payments either online or via the PayPal app, available on iOS and Android. If you are declined for the plan, you can still use PayPal to pay; you’ll just need to pick a different payment method from your wallet. PayPal will send you an email stating the reason you were declined. Does Pay in 4 Charge Fees?There are no fees to use Pay in 4. Payments are interest-free. Additionally, as of Aug. 18, 2021, PayPal no longer charges late fees for its buy now, pay later products. Does Pay in 4 Affect Your Credit Score?PayPal may perform a soft check on your credit when you apply for Pay in 4, but this will not affect your score. A soft credit check gives the lender the ability to review your credit report and determine creditworthiness. While these soft checks don’t affect your credit score, they are listed on your credit report. Who Can Use Pay in 4 and What Purchases Are Eligible?PayPal is offering the Pay in 4 plan to a growing number of U.S. customers. There are a few eligibility requirements:
Currently, PayPal offers Pay in 4 in all states except Missouri, New Mexico, Nevada, North Dakota, Wisconsin and the U.S. territories. However, not everyone gets approved. Approval depends on PayPal’s internal checks and the soft check of your credit score. You can use Pay in 4 at merchants that accept PayPal payments in any supported currency. PayPal will automatically convert the purchase amount into U.S. dollars during the checkout process. There are also purchase amount limits for Pay in 4; you can only use this payment method for transaction amounts between $30 and $1,500. PayPal might not allow Pay in 4 for certain recurring subscription services, according to the PayPal website, and availability depends on the merchant. Can You Pay Off a Pay in 4 Plan Early?When you start a Pay in 4 plan, you pay the first payment at the time of purchase. To see your remaining payments, you can log in to the website or PayPal app to view your account summary. Your account summary shows your total purchases and their dates, how many payments you’ve made and your total payments to date, your remaining balance and the date and amount of your next payment due. From there, you can make an extra payment or pay off the entire plan early. There are no penalties or additional fees to pay it off early. Any extra payments are applied and displayed in your plan activity immediately. PayPal Pay in 4 vs. CompetitorsMore and more companies are offering buy now, pay later plans, so PayPal isn’t the only option out there. Here are a few competitors to be aware of. KlarnaKlarna was founded in 2005 in Sweden and also offers a Pay in 4 plan. Like PayPal, you can pay for your purchase with four interest-free payments over time. Klarna also has options for paying in 30 days and monthly financing. SezzleLike the others, Sezzle offers a four-payment plan. As long as you make your payments on time, there are no fees, and payments are interest-free. Sezzle is currently accepted at more than 44,000 online stores. Unlike PayPal, Sezzle does not have fixed credit limits. Sezzle evaluates your limit with every purchase based on a soft credit check, order history with the service, how long you’ve been a customer and a few other factors. AffirmAffirm offers a buy now, pay later loan with an interest rate based on your loan term and your credit. Affirm is currently partnered with over 168,000 merchants. Your rate will be 0% to 36% APR. The purchase limit for Affirm is $17,500, and a down payment may be required. AfterpayAfterpay also offers a four-payment plan that pays off your purchases online or in certain stores in six weeks. To sign up, you’ll need your email, phone number, physical address, date of birth and a debit or credit card. There’s no interest, but you could be hit with late fees totaling 25% of your purchase if you fall behind on your payments. Takeaways on PayPal Pay in 4PayPal’s Pay in 4 feature is an excellent option if you want to make a large purchase more affordable by paying it over time. It only works if the merchant accepts PayPal, but millions of online stores do. You’ll enjoy interest-free payments every two weeks, and you can pay it off early if you choose.
FAQ on PayPal Pay in 4Buy now, pay later services are growing in popularity, but they're still unfamiliar to many consumers. These frequently asked questions will help you understand more about how PayPal Pay in 4 works.
Cynthia Measom and Daria Uhlig contributed to the reporting for this article. Information is accurate as of Aug. 22, 2022. Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article. Share This Article:  By Scott JeffriesAugust 23, 2022Related Articles
About the AuthorScott JeffriesScott Jeffries is a seasoned technology professional based in Florida. He writes on the topics of business, technology, digital marketing and personal finance. After earning his bachelor’s in Management Information Systems with a minor in Business, Scott spent 15 years working in technology. He's helped startups to Fortune 100 companies bring software products to life. When he's not writing or building software, Scott can be found reading or spending time outside with his kids. How does the PayPal pay in 4 Work?PayPal's Pay in 4 splits the total price of your order into four equal installments, due every two weeks, with the first payment due at checkout. For example, if your total is $300, you'll pay $75 at checkout. Then, you will have three remaining payments of $75, due every two weeks until you've paid in full.
How often do you pay with PayPal Pay in 4?Split purchases between $30-$1,500 into 4 interest-free, bi-weekly payments without the hassle of late fees.
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Paypal pay in 4 how does it work
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