PayPal (NASDAQ: PYPL) announced that U.S. customers will be able to earn cash back on their PayPal Buy Now Pay Later (BNPL) purchases between now and the end of the 2025. As the majority of consumers tend to feel more financial stress heading into this festive season, PayPal, one of the BNPL providers serving users worldwide, is focused on helping to make it easier to manage spending.
With PayPal’s BNPL offering, consumers are able to split purchases into more manageable payments and earn cash back, thus making their money go further.
PayPal said that it is also offering Pay Monthly in-store in the U.S., giving customers more choice and flexibility to pay over time.
Whether consumers are interested in purchasing gifts, fashion, electronics, or planning travel, PayPal’s BNPL options provide them with more ways to earn rewards.
According to the announcement from PayPal, consumers are now able to save the 5% cash back offer via the PayPal app and it will “automatically apply to all eligible in-store and online PayPal BNPL transactions now until the end of the year.”
Michelle Gill, General Manager, Small Business and Financial Services at PayPal said that with cash back on Buy Now Pay Later products, they’re giving them a “smarter way to pay and more flexibility to shop the way they want.”
More than 80% of consumers who have used or considered BNPL are open to using it for holiday shopping this year, making PayPal BNPL an opportunity for merchants aiming to capture more sales and boost conversion.
PayPal’s BNPL options help are intended to make it easy for merchants to boost sales and loyalty by “giving shoppers flexible payment options and cash back incentives that reduce cart abandonment and build loyalty at checkout.”
Within the PayPal app, clients are now able to apply for their preferred loan amount and when approved, they will be issued “a single-use virtual card that can be added to their mobile wallet and used within 24 hours.”
PayPal enhances spend management with the option to schedule automatic payments, track loans and receive reminders ahead of scheduled payments.