PayPal Inc. (NASDAQ: PYPL) disclosed that it is planning to introduce “buy now, pay later (BNPL)” option in Australia this June. PayPal has earlier launched BNPL offer in Britain and US. It has disclosed that both in Australia and Britain it has managed more than $750 million of deals.
PYPL stated that it is also intending to launch its interest-free “Pay in 4” service for the clients of Australia. The firm has decided to roll out the new option in Australia because the rule of the expanding space is less as compared to other user finance classifications, while acceptance is greater than other markets.
The advent of PayPal is posing a new challenge for Zip Co Ltd and Afterpay. The entrance of PayPal is also a challenge for Sweden's Klarna which is supported by a small shareholding from largest bank of Australia. The general manager of payments at PayPal Australia, Andrew Toon, revealed that the firm had been "flooded" with appeals from Australian dealers and businesses after the foreign unveiling of its BNPL service last year.
PayPal is intended to take advantage of on its long-term relationships with Australian traders but not to the point of quest exclusive provisions that would power out other BNPL providers. Shares of Afterpay, which have been beaten in current weeks by the global tech sell-off, were rose more than 8%, while Zip declined 3.6% toward the end of the trading day.