• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Articles
  • News
  • Events
  • Advertize
  • Jobs
  • Courses
  • Contact
  • (0)
  • LoginRegister
    • Facebook
    • LinkedIn
    • RSS
      Articles
      News
      Events
      Job Posts
    • Twitter
Datafloq

Datafloq

Data and Technology Insights

  • Categories
    • Big Data
    • Blockchain
    • Cloud
    • Internet Of Things
    • Metaverse
    • Robotics
    • Cybersecurity
    • Startups
    • Strategy
    • Technical
  • Big Data
  • Blockchain
  • Cloud
  • Metaverse
  • Internet Of Things
  • Robotics
  • Cybersecurity
  • Startups
  • Strategy
  • Technical

PayPal scraps late fees for buy now, pay later purchases

Reuters / 2 min read.
August 18, 2021
floq.to/P0TKX

By Anna Irrera

LONDON (Reuters) – PayPal Holdings Inc will no longer charge customers late fees when they miss payments on buy now, pay later (BNPL) purchases globally, as competition heats up in the fast-growing sector.

The changes will be effective from October in the United States, the United Kingdom and France, the San Jose, California-based company said on Wednesday. PayPal’s BNPL services in Germany and Australia are already free of late fees.

The company, which first started offering BNPL services last year, hopes the changes will help make its products more affordable and attractive for consumers.

“We felt late fees were hindering the customer experience,” Greg Lisiewski, vice president of Global Pay Later Products at PayPal, said in an interview.

The changes come as more regulators across the world take a closer look at the fast-growing BNPL sector in a bid to ensure consumers do not take on more debt that they can handle.

“Given the massive rise and acceleration through the pandemic of this space, regulators across all geographies are taking notice,” Lisiewski said.

“We think that is appropriate, and we do think late fees will be, and have been, part of that discussion, and we think being as customer friendly as possible puts you in a better place with regulators.”

Asked if there was a risk that dropping late fees would encourage more consumers to default on their loans, he said he didn’t expect to see that. PayPal doesn’t disclose default rates on BNPL purchases.

BNPL services, which allow consumers to split payments for purchases into installments, have boomed globally during the pandemic, as many people have turned to shopping online.

The sector’s explosive growth has led to increased competition.

Earlier this month Square Inc, the payments firm led by Twitter CEO Jack Dorsey, announced it was buying Australian BNPL firm Afterpay Ltd.

BNPL models vary, with some providers earning most profits by collecting fees from merchants at the point of sale, and others charging interest and late fees to consumers.

PayPal’s late fees vary based on country and U.S. state regulations. Since launching the service, the company has processed more than $3.5 billion in total payment volume through BNPL products, PayPal said. More than 7 million consumers have used the products, it said.

(Reporting by Anna Irrera; Editing by David Holmes)

Categories: News
Tags: BI, consumers, rates, volume

About Reuters

Primary Sidebar

E-mail Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Publish
AN Article
Submit
a press release
List
AN Event
Create
A Job Post

Jobs

  • Software Engineer | South Yorkshire, GB - February 07, 2023
  • Software Engineer with C# .net Investment House | London, GB - February 07, 2023
  • Senior Java Developer | London, GB - February 07, 2023
  • Software Engineer – Growing Digital Media Company | London, GB - February 07, 2023
  • LBG Returners – Senior Data Analyst | Chester Moor, GB - February 07, 2023
More Jobs

Tags

AI Amazon analysis analytics app application Artificial Intelligence BI Big Data business China Cloud Companies company costs crypto customers Data design development digital engineer environment experience future Google+ government health information learning machine learning market mobile news public research security services share skills social social media software strategy technology

News

  • U.S. ‘won’t tolerate’ China’s ban on Micron chips, Raimondo says
  • U.S.-led Indo-Pacific talks produce deal on supply chain early warnings
  • China deletes 1.4 million social media posts in crack down on ‘self-media’ accounts
  • China, South Korea agree to strengthen talks on chip industry – Chinese commerce ministry
  • Twitter cannot hide from EU rules after exit from code, EU’s Breton says
More News

Related Online Courses

  • Oracle Cloud Data Management Foundations Workshop
  • Data Science at Scale
  • Statistics with Python
More courses

Footer


Datafloq is the one-stop source for big data, blockchain and artificial intelligence. We offer information, insights and opportunities to drive innovation with emerging technologies.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Recent

  • 5 Reasons Why Modern Data Integration Gives You a Competitive Advantage
  • 5 Most Common Database Structures for Small Businesses
  • 6 Ways to Reduce IT Costs Through Observability
  • How is Big Data Analytics Used in Business? These 5 Use Cases Share Valuable Insights
  • How Realistic Are Self-Driving Cars?

Search

Tags

AI Amazon analysis analytics app application Artificial Intelligence BI Big Data business China Cloud Companies company costs crypto customers Data design development digital engineer environment experience future Google+ government health information learning machine learning market mobile news public research security services share skills social social media software strategy technology

Copyright © 2023 Datafloq
HTML Sitemap| Privacy| Terms| Cookies

  • Facebook
  • Twitter
  • LinkedIn
  • WhatsApp

In order to optimize the website and to continuously improve Datafloq, we use cookies. For more information click here.

settings

Dear visitor,
Thank you for visiting Datafloq. If you find our content interesting, please subscribe to our weekly newsletter:

Did you know that you can publish job posts for free on Datafloq? You can start immediately and find the best candidates for free! Click here to get started.

Not Now Subscribe

Thanks for visiting Datafloq
If you enjoyed our content on emerging technologies, why not subscribe to our weekly newsletter to receive the latest news straight into your mailbox?

Subscribe

No thanks

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Marketing cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!