SAN JOSE, Calif., Sept. 18, 2019 /PRNewswire/ -- PayPal
Credit is enhancing its promotional financing offering to
purchases starting at $30, making it
possible for more retailers to now tap into the millions of
consumers in the U.S. who already use PayPal Credit.
To help more retailers attract more customers and drive sales
this holiday season, PayPal Credit is extending its promotional
financing offering to purchases starting at $30 for the first time. Retailers will be able to
offer 3 month Easy Payments at 0% APR on purchases of $30 and above with no down payment, and the
retailer gets paid up front (See terms). PayPal Credit is providing
an easy integration with a singular line of code that will allow
merchants to promote the offer across their online storefronts.
When consumers use this new offer from PayPal Credit, the merchant
gets paid in full, and PayPal Credit manages the consumer's
digital, reusable credit line. In partnership with Synchrony Bank,
the company is piloting this offer during the holiday season, with
the intent to expand rollout in 2020.
Online purchase financing has become an important tool for
consumers looking to buy now and pay over time. This is especially
true during the holiday season, where U.S. consumer holiday
spending has historically increased1. Mobile shopping
eclipsed desktop shopping for the first time in the 2018 holiday
season2, while data from PayPal revealed that
80% of PayPal Credit transactions are under $99, even without a special financing
offer3.
With 45% of PayPal Credit volume on mobile, consumers are
looking for seamless, mobile-first financing options for purchases
at increasingly lower ticket sizes4.
For merchants, PayPal Credit helps drive higher sales, increase
average order volume, and improve customer loyalty. When businesses
add the PayPal Credit button at checkout, retailers see an average
15 percent increase in incremental sales, starting within the first
3 months5 and 56 percent of the 2000 users surveyed say
they are more likely to shop at a retailer again if they offer
PayPal Credit.6
"PayPal Credit has created a culture of empowered shoppers.
Shoppers do not need to apply for a new credit line each time they
use PayPal Credit, they only need to apply once. In fact, unlike
one-time use installments products, 90 percent of PayPal Credit
spend is made by existing customers reusing their credit line and
therefore does not require a new credit application," said
Susan Schmidt, VP of US Consumer
Credit at PayPal. Susan continued, "With this new offering,
merchants will also be able to take advantage of PayPal's affiliate
marketing program, with content marketed to more than three million
consumers across the customer lifecycle. PayPal helps drive
consumers to merchants' websites to help build incremental revenue
growth."
PayPal Credit is the only online financing platform that can tap
into PayPal's two-sided network of 286 million active accounts,
including 23 million merchant accounts. Backed by 15+ years of
experience, in February 2019 PayPal
Credit surpassed $50B in transaction
volume and has withstood financial cycles, including the Great
Recession of 2008. Consumers will still be able to take advantage
of No Interest if paid in full in 6 months on purchases of
$99 or more. (Interest will be
charged to the account from the purchase date if the balance is not
paid in full within 6 months. Minimum monthly payments required.
Subject to credit approval. See terms.)
About PayPal
Fueled by a fundamental belief that
having access to financial services creates opportunity, PayPal
Holdings, Inc. (NASDAQ: PYPL) is committed to democratizing
financial services and empowering people and businesses to join and
thrive in the global economy. Our open digital payments platform
gives PayPal's 286 million active account holders the confidence to
connect and transact in new and powerful ways, whether they are
online, on a mobile device, in an app, or in person. Through a
combination of technological innovation and strategic partnerships,
PayPal creates better ways to manage and move money,
and offers choice and flexibility when sending payments, paying or
getting paid. Available in more than 200 markets around the
world, the PayPal platform, including Braintree, Venmo, Xoom and
iZettle, enables consumers and merchants to receive money in more
than 100 currencies, withdraw funds in 56 currencies and hold
balances in their PayPal accounts in 25 currencies. For more
information on PayPal, visit https://www.paypal.com/about. For
PayPal Holdings, Inc. financial information,
visit https://investor.paypal-corp.com.
Follow us on Twitter: @PayPalNews
_______________________________
1 2018 Deloitte holiday retail survey,
https://www2.deloitte.com/us/en/insights/industry/retail-distribution/holiday-retail-sales-consumer-survey.html
2 2018 Salesforce Holiday Shopping Report,
https://www.salesforce.com/solutions/industries/retail/holiday-shopping-report/
3 Internal PayPal Analytics, representative of PayPal
and PayPal Credit transaction data between August 2018 – September
2019
4 Ibid
5 Average incremental sales based on PayPal's
analysis of internal data among middle market merchants with annual
sales above $5MM against a similar control population between
January 2013 and March 2018.
6 Online study commissioned by PayPal and conducted by
Logica Research in November 2018
involving 2,000 U.S. consumers, half were PayPal Credit users and
half were non-PayPal Credit users.
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SOURCE PayPal