Overview

• PayPal introduced a 5% cash-back promotion on Buy Now, Pay Later purchases that runs through the end of 2025, applying automatically to eligible online and in-store transactions saved in the app.
• The company plans to enable Pay Monthly for in-store purchases in the U.S. in the coming weeks by issuing single-use virtual cards through its app that can be added to mobile wallets within 24 hours.
• A PayPal-commissioned survey found 60% of shoppers feel more financial stress heading into the holidays and about 80% of those who have used or considered BNPL are open to using it for holiday shopping.
• PayPal’s BNPL portfolio includes interest-free Pay in 4 and interest-bearing Pay Monthly loans of $49 to $10,000 over three to 24 months with fixed APRs, expanding options for larger-ticket purchases.
• FICO has said it will begin factoring BNPL into credit scores starting in fall 2025, while reporting practices vary by provider and PayPal says it does not report BNPL loans to credit bureaus; experts warn these loans can encourage overspending and escalate debt if mismanaged.