Online purchase financing has become an important tool for consumers looking to buy now and pay over time. This is especially true during the holiday season, where U.S. consumer holiday spending has historically increased1. Mobile shopping eclipsed desktop shopping for the first time in the 2018 holiday season2, while data from PayPal revealed that 80% of PayPal Credit transactions are under $99, even without a special financing offer3.
With 45% of PayPal Credit volume on mobile, consumers are looking for seamless, mobile-first financing options for purchases at increasingly lower ticket sizes4.
For merchants, PayPal Credit helps drive higher sales, increase average order volume, and improve customer loyalty. When businesses add the PayPal Credit button at checkout, retailers see an average 15 percent increase in incremental sales, starting within the first 3 months5 and 56 percent of the 2000 users surveyed say they are more likely to shop at a retailer again if they offer PayPal Credit.6
PayPal Credit has created a culture of empowered shoppers. Shoppers do not need to apply for a new credit line each time they use PayPal Credit, they only need to apply once. In fact, unlike one-time use installments products, 90 percent of PayPal Credit spend is made by existing customers reusing their credit line and therefore does not require a new credit application, said Susan Schmidt, VP of US Consumer Credit at PayPal. Susan continued, With this new offering, merchants will also be able to take advantage of PayPal's affiliate marketing program, with content marketed to more than three million consumers across the customer lifecycle. PayPal helps drive consumers to merchants' websites to help build incremental revenue growth.
PayPal Credit is the only online financing platform that can tap into PayPal's two-sided network of 286 million active accounts, including 23 million merchant accounts. Backed by 15+ years of experience, in February 2019 PayPal Credit surpassed $50B in transaction volume and has withstood financial cycles, including the Great Recession of 2008. Consumers will still be able to take advantage of No Interest if paid in full in 6 months on purchases of $99 or more.