PayPal has rolled out its Pay in 4 buy‑now‑pay‑later service to Canadian consumers, allowing eligible purchases between $30 and $1,500 CAD to be split into four equal, interest‑free payments over six weeks with no fees or late charges. The launch coincides with the start of the holiday shopping season, positioning the company to capture early‑season demand for flexible payment options.
The move taps into a rapidly growing BNPL market in Canada, where PayPal’s 2025 Festive Spending Survey found that 60% of respondents who had not used BNPL would try it if there were no fees. The service is already available at a range of retailers—including Knix, Samsonite, Silk & Snow, The Home Depot Canada, and Ticketmaster—providing merchants with a seamless, fee‑free checkout experience that can drive higher conversion rates and larger average order values.
PayPal’s management highlighted the strategic importance of the Canadian expansion. Michelle Gill, General Manager of Small Business and Financial Services, said the company has served Canadians for over 15 years and that the fee‑free Pay in 4 helps consumers manage cash flow without hidden costs while giving merchants a proven, high‑conversion payment option during the peak holiday period.
The announcement generated a modest positive market reaction; in pre‑market trading on November 10, PayPal’s shares were up 1.21%. The lift reflects investor optimism that the new market entry will add to PayPal’s growing BNPL volume, which has risen more than 20% year‑over‑year and reached $33 billion globally in 2024, up 21% from 2023.
PayPal’s BNPL segment is a key growth engine, and the Canadian launch is part of a broader strategy to expand its commerce platform. The company has also pursued a balance‑sheet‑light model, recently partnering with Blue Owl Capital to purchase BNPL receivables, which should improve liquidity and support further geographic expansion.
Overall, the Canadian launch strengthens PayPal’s position in a competitive BNPL landscape that includes established players such as Klarna, Afterpay, and Sezzle. By leveraging its trusted brand and existing user base, PayPal is poised to capture a significant share of the Canadian market while delivering tangible benefits to merchants and consumers alike.
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