You probably already know installment payments from buying a car or furniture. You do not have to pay for larger purchases directly, but can pay off the amount over a certain period of time. PayPal has now also introduced installment payments for its customers. The merchants are paid in advance by PayPal, while you, the customer, use the "Buy now, pay later" option to gradually pay off the amount at PayPal. You can find out what exactly you have to do here.
Who can use the installment payment?
Everyone! You can easily buy larger purchases between 99 and 5000 euros with PayPal's installment payment if you have a PayPal account with a confirmed bank account and a good credit rating. You can read about how to confirm your account in PayPal in another article.
This is how the installment payment works with PayPal
If you make a purchase between 99 and 5000 euros online, you will see the option to purchase in installments during the payment process with PayPal. Simply select them to submit an application. You will then find out within seconds whether your application for payment in installments has been approved.
You then have the option of either accepting the installment payment agreement or rejecting it and paying with another method instead. If you accept the agreement, the first monthly installment will be deducted from your bank account approximately 30 days after it is closed..
What are the terms and conditions of payment in installments with PayPal?
If you accept the installment payment agreement with PayPal, you are entering into an installment payment agreement with PayPal. This runs for 12 months with an annual interest rate of 9.99%. The 12 monthly payments are always made 30 days apart. You will be informed of this by PayPal a few days before your next payment. Of course, you always have the option of a special repayment or an early repayment without a surcharge.
How do you manage the installment payments?
If you have an active contract for an installment purchase with PayPal, you can easily manage this in your PayPal account. If you select the associated transaction there, you not only see how much money you still have to repay, but you can also pay the entire loan immediately..
Does PayPal Buyer Protection apply to installment payments?
As with every purchase you make with PayPal, buyer protection also applies to installment payments. So you not only have the financial flexibility of the monthly installments, but also benefit from buyer protection. This means that you can get a full refund of the purchase price of the item if you do not receive it from the retailer or if you receive an item that does not match the item you ordered.