Should You Offer PayPal Pay In 4 To Your Customers?

There are plenty of buy now, pay later options for eCommerce sellers, including PayPal Pay in 4. Below, we’ll break down how PayPal installment payments work, how to add PayPal Pay Later to your store, and whether PayPal Pay in 4 is the right BNPL solution for your business.

What Is PayPal Pay In 4?

PayPal Pay in 4 is a buy now, pay later option that lets customers split their purchase into four interest-free payments over six weeks. Merchants are paid the full amount upfront, while customers repay PayPal in installments.

Why Use PayPal Pay Later

PayPal Pay Later gives customers flexible, interest-free installment options — and that flexibility can directly boost conversions. Studies show that shoppers frequently abandon carts when BNPL isn’t available, and many are more willing to buy when they can spread payments over time.

Here’s why you should consider offering Pay in 4:

• Meets customer expectations: Younger shoppers are used to installment-style payments and often choose stores that offer BNPL.
• Reduces cart abandonment: Over half of shoppers have abandoned a purchase when pay-later options weren’t available.
• Clear, transparent checkout: Pay in 4 shows repayment details upfront and charges no interest and no late fees.
• Trusted brand: PayPal is widely recognized, so merchants don’t need to educate customers the way they might with smaller BNPL providers.
• Merchant-friendly: PayPal pays sellers the full amount upfront and manages repayment, so there’s no financing risk for you.
• Cost-effective: Unlike many BNPL providers that charge 3% – 6% per transaction, Pay in 4 is included for PayPal Business users with no additional BNPL fees.

However, there are some limitations. Pay in 4 is available in the US only, for purchases between $30 and $1,500. It’s also not natively supported by Shopify, so manual setup is required.

Despite these limitations, PayPal Pay Later is a simple, trusted, and low-cost way to offer BNPL in your store.

How PayPal Pay In 4 Works For Your Customers

Customers see Pay Later messaging throughout your site, and the offers update automatically based on their cart total. Orders over $1,500 no longer qualify for Pay in 4 and instead show PayPal Credit options.

You can place Pay in 4 messaging on banners, product pages, your footer, and at checkout. A PayPal Pay Later button appears during checkout, and depending on your setup, you can also add one-click PayPal buttons on product pages.

At checkout, customers complete a quick Pay in 4 application and receive an instant decision.

Here is an example of what the Pay In 4 loan application process looks like for your customers.

• Step 1: Customer selects PayPal Pay Later at checkout; a pop-up opens without leaving your site.
• Step 2: Customer logs in to PayPal (or creates an account).
• Step 3: Customer confirms shipping details, selects Pay in 4, and reviews the payment schedule.
• Step 4: Customer submits the application; PayPal performs a soft credit check.
• Step 5: If approved, the customer chooses an autopay method (bank, debit, or credit) and accepts the loan terms.
• Step 6: Customer pays 25% upfront; remaining payments are auto-charged every 15 days. Customers can review or repay early through their PayPal account.

How To Add PayPal Pay Later To Your Shop

To offer PayPal Pay Later, you need a PayPal Business account with PayPal Checkout enabled. Pay in 4 is included at no extra cost beyond standard PayPal transaction fees (3.49% + a fixed fee).

You’ll need to meet the following requirements to qualify:

• Must sell online to U.S. buyers.
• Pay in 4 is available for orders $30 – $1,500.
• Some business types (e.g., nonprofits) are not eligible.
• PayPal takes on all repayment risk, and you’re paid upfront.

To enable Pay in 4 with BigCommerce, WooCommerce, and other major eCommerce platforms, simply turn on Pay Later in your payment settings and use PayPal’s prebuilt messaging.

For Shopify and unsupported platforms, you can use PayPal’s Smart Payment Button generator to create code that includes Pay Later options, then paste it into your product pages.

You can also add custom Pay Later messaging using HTML or JavaScript — just make sure to test changes in the PayPal sandbox before going live.

PayPal Pay Monthly

If you want to offer a longer-term BNPL option, PayPal also provides Pay Monthly, which lets customers spread payments over 6, 12, or 24 months.

This option can be used for purchases ranging from  $199 to $10,000 (vs. $30 – $1,500 for Pay in 4). The first payment is due one month after purchase. This option is best for larger carts and customers who need more time to pay.

Pay Monthly gives your buyers a flexible alternative to Pay in 4, especially for higher-priced items.