More Rewards, More Flexibility: PayPal Introduces 5% Cash Back on Buy Now Pay Later Purchases this Holiday Season

Core Insights - PayPal is enhancing its Buy Now Pay Later (BNPL) offerings by providing U.S. customers with 5% cash back on BNPL purchases until the end of the year, addressing financial stress among shoppers during the holiday season [1][3] - The introduction of Pay Monthly in-store allows customers to have more flexibility and choice in payment options, applicable to various shopping categories [2][4] - Over 80% of consumers who have used or considered BNPL are open to using it for holiday shopping, presenting a significant opportunity for merchants to increase sales and conversion rates [3] Summary by Sections Cash Back Incentives - U.S. customers can earn 5% cash back on PayPal BNPL purchases from now until the end of the year, aimed at easing financial stress during the holiday season [1][2] - The cash back offer will automatically apply to all eligible in-store and online transactions made through the PayPal app [2] Pay Monthly In-Store - PayPal is rolling out its Pay Monthly option for in-store purchases, providing customers with the same cash back and flexibility as online transactions [4][5] - Customers can apply for a loan amount through the PayPal app, receiving a single-use virtual card for immediate use [4] Merchant Opportunities - PayPal BNPL is positioned as a tool for merchants to attract more shoppers and enhance conversion rates during the holiday season [3] - The flexible payment options and cash back incentives are designed to reduce cart abandonment and foster customer loyalty at checkout [3]