PayPal is revamping the installment payment. From now on, customers will no longer pay an annual percentage rate. So you can save the prices from today to tomorrow, despite inflation. But there is also a catch.
PayPal cancels interest: installment payment for a limited time at zero rate
PayPal accepts the competition offer from Klarna. According to his own statements, the Swedish payment service provider wanted to shake up the industry with the end of interest on installment payments. PayPal has also announced plans to do so. Since May 16, 2022, the online payment service requires no interest on a temporary payment plan.
PayPal offers as before Payment terms of 3, 6, 12 or 24 months to. Instead of the usual 9.99 percent effective annual interest rate, however, this is completely eliminated. PayPal is currently informing its customers about this. Means: If you normally have to live in installments with higher costs for the later payment, you currently only pay the price at the time of purchase. There are no additional costs.
With this, PayPal hits just the right moment. Because with the current inflation, it is very likely that your Products that you buy today will not be available at the same price in a few weeks. Instead, they are likely to become more expensive. The latest survey sees inflation at 7.4 percent in April 2022.
What PayPal Customers Need to Know now
But there are some limitations. For example, PayPal reserves the right to allow the zero tariff or installment payment only if the creditworthiness check is positive. In addition, it is not offered for amounts under 99 euros. However, this is not bad, the savings effect is also more worthwhile with larger purchases. Going up is An end to an order value of 5,000 euros.
Here we show you how you can still save on online shopping:
In contrast to the competitor Klarna, PayPal does not cancel the interest on installment payments in principle. The promotion is valid until June 26, 2022. If you want to use it, you have to do nothing more than pay for a corresponding purchase with PayPal within the promotion period and select the installment payment for it. The zero interest rate then applies automatically.
You also do not have to fear any follow-up costs for longer payment obligations. The zero percent financing from PayPal applies to installment payments, provided that they were completed within the promotional period – that is also for installments that are due only afterwards.