PayPal’s new monthly financing option expands on its existing BNPL portfolio, which already includes an option to pay in four installments and a more traditional PayPal credit financing option. Some 22 million of PayPal’s customers used its “flexible payment options” in the past year, the company said.
The new monthly BNPL financing will be offered via WebBank, a Salt Lake City-based FDIC-insured, state-chartered bank, and it will be subject to credit approval. In the past, PayPal has also linked with other banks to offer its BNPL financing. For instance, its PayPal Credit financing is offered by Synchrony Bank and is tied to a credit card account that lets consumers pay for purchases immediately or over time.