Payment in installments is on the rise.
It accounts for around 15% of online sales of products, according to the Federation of E-Commerce and Distance Selling.
PayPal understood this well and decided from this Tuesday morning to remove the charges on the payment in four installments for its 12.8 million users.
A breath of fresh air in these times of health and economic crisis for French people with sometimes bloodless budgets and who are looking for more flexibility.
The online payment platform already offered since last June the possibility of splitting its payment into four installments.
But a charge of 2.1% applied to the consumer (capped at 20 euros).
Thus, for a purchase of 500 euros, the customer who chose this option ultimately paid 510.50 euros.
"There was a very strong enthusiasm," explains Francis Barel, director of PayPal in France.
We have therefore decided to make this service free for both consumers and e-merchants, a first in France.
For all purchases from 50 to 2,000 euros
Concretely, all purchases of 50 to 2,000 euros are eligible for payment in 4 installments free of charge.
The merchant sites concerned are both French and foreign.
The split repayment is made in four installments spread over three months.
For security reasons, new registrants on the platform do not immediately have access to this functionality.
"We offer it to clients about whom we have enough information to offer this service without there being any risk for them or for us," explains Francis Barel.
For their awareness, users see their outstanding payment in installments as soon as they log into their PayPal account.
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On the e-merchant side, the payment in four installments free of charge is a godsend, in particular for small structures which, unlike many behemoths in the sector, were technically and financially unable to offer this functionality.
They increase their attractiveness, receive full payment and, according to PayPal, they increase their sales, all without spending a dollar.
"We take care of all the costs of this service", supports Francis Barel, for whom this offer is an excellent way to make people discover the other services of the platform, online kitty, sending money abroad or still payment between individuals.