PayPal's Pay in 4 is gradually becoming the preferred way for PayPal users to make payments.
In fact, an estimated 289,000 BNPL users chose and used PayPal Pay in 4 at checkout in 2022—you can only guess how much higher this figure has grown today as we find more convenience in using the service.
If you're wondering how this payment method works and how to get approved for it, I've compiled everything you need in this detailed guide so you can get started with this leading BNPL service.
What is PayPal Pay in 4?
If you've checked out at a merchant that supports PayPal's Pay in 4, you've certainly seen the payment method show up when you choose PayPal as a payment method—and if you just saw it for your first time, you may be wondering what it is actually.
Well, PayPal Pay in 4 is a relatively new Buy Now Pay Later (BNPL) service, launched in the third quarter (Q3) of the year 2020, just the year that saw the massive switch from traditional to digital convenience.
In a nutshell, it is a service that lets you split the cost of your eligible purchases into four separate installments, which are usually fee-free (if you make payments before the due date, of course).
How Does PayPal Pay in 4 Work?
If you've used a BNPL service before, you should know how Pay in 4 works.
Well, if you don't, let me take a real-life example that might cling to something in your mind.
Let's say you are shopping for some sneakers worth $100 at one of the most popular stores that accept PayPal Pay in 4, New Balance, but you don't have all that $100 to make an instant payment.
This is where you'll definitely find Pay in 4 useful and even crucial for your financial management because it will let you make four fee-free installment payments of $25, in a bi-weekly schedule—that is, you'll have to make a payment every after two weeks, and you should be expected to finish the payment in 8 weeks.
This way, you'll be able to better plan for your repayment, and of course, you'll need to make a down payment equal to a quarter of the total amount to be paid. In the case of the example mentioned earlier, it should be $25.
If you don't want to make a down payment, you can always check out these online stores that don't require a down payment to be made.
How to Get Approved for PayPal Pay in 4
Now that you know how Pay in 4 works, it's a good time we get to getting you approved for the BNPL payment option.
Just as with any other leading BNPL service, there are requirements you need to meet before getting approved for it, and once you reach these requirements, you'll only be able to apply for approval at the checkout of a supported merchant.
That said, you'll need to meet the following requirements to get approved for Pay in 4:
- Be at least 18 years of age.
- Reside in a Pay in 4 supported country.
- Have a PayPal account in good standing—I mean, one with no bad records on it.
If you're sure you meet the aforementioned requirement, you can take the following steps to apply for Pay in 4 approval:
- Go to a store that supports Pay in 4 and shop for your needs.
- Once you're done adding your items to your cart, proceed to the checkout.
- Select PayPal at the checkout, and you should see the Pay Later option. Just choose it and follow the prompts to apply for it.
- It should take just a few seconds for PayPal to determine whether or not you should be approved, which means you'll get their decision in no more than a few seconds.
- Once you're approved, you should be able to make the ongoing payment and many others that are eligible for Pay in 4.
If you're worried about your credit score, rest assured, as Pay in 4 only runs a soft credit check before and while your credit score doesn't typically influence their decision, having a passable credit score should guarantee your approval.
PayPal Pay in 4 Limits and Fees
PayPal Pay in 4 works on a set of limits that govern how users use the service to make payments. That said, the minimum purchase amount that should get you eligible for the service is $30, and the maximum amount is $1,500.
Again, there are no fees involved with using PayPal Pay in 4, even if you miss a payment. If in case you miss a payment, you'll receive a phone call from PayPal reminding you of your missed payment, and if it continues, you won't be eligible for future approval.
Can I Use PayPal Pay in 4 On Amazon?
No, you cannot use PayPal Pay in 4 on Amazon at the moment since Amazon hasn't integrated PayPal.
Who Accepts PayPal Pay in 4?
Millions of stores worldwide now accept Pay in 4 as one of their available payment options since they offer PayPal.
While it isn't something easy to list out all the stores that accept PayPal Pay in 4, you can easily find whether a store you visit accepts Pay in 4 by choosing PayPal at the checkout and seeing if the option "Pay Later" shows up.
If it does, then it means the store accepts Pay in 4, which is typically the case for any store accepting PayPal in the first place.
Why Can't I Use PayPal Pay in 4?
If you're unable to use PayPal Pay in 4, it is typically due to two things: your account doesn't qualify for Pay in 4, or you reside in a location where this feature hasn't been rolled out yet.
PayPal Pay in 4 Virtual Card
PayPal Pay in 4 comes with a single-use card, which comes as a bonus feature for anyone who uses PayPal alongside Honey for discount shopping.
You can easily create a Pay in 4 single-use card through the PayPal app as follows:
- Tap "Pay Later" on the menu tab.
- Tap Get Started below "Pay Later at more places".
- Enter an amount between $30 and $1,500 to apply and tap "Continue".
- Confirm your information and tap "Agree and Apply".
- Select your Autopay repayment funding source and tap "Agree and Continue".
- Copy your Single-use Card number.
- Complete your purchase with your single-use card.
This card should always work and be accepted for payments as long as your approval status for Pay in 4 stands.
Benefits of Using PayPal Pay in 4
PayPal's Pay in 4 service comes with many benefits, including some you weren't even expecting.
These benefits include:
1. Interest-free Repayments
This is the most eye-catching benefit of Pay in 4—you won't be required to pay any fee when making your installment payments, even if you are late on a repayment schedule, which is something not all BNPL services offer.
2. No Impact on Credit Score
Unlike most leading BNPL services that require a robust credit score to make a decision on your application, PayPal Pay in 4 does not rely on your credit score to make a decision and doesn't affect your credit, as it only makes a soft check on your credit history.
3. Decision is Instant
Pay in 4 understands the importance of you making a payment, which is why it typically makes a decision in seconds and doesn't take much of your shopping time.
4. Lets You Save While Shopping
Another benefit most shopping enthusiasts don't know about Pay in 4 is that it lets you get cash back of up to 5% when making eligible payments.
Final Thoughts
PayPal Pay in 4 can be a valuable financial tool for anyone who wants to shop on a budget.
It typically lets you shop for something you can't afford at that moment and repay for it on a bi-weekly schedule without any fee, and at the same time save while you do so.
This guide compiles the steps you need to get approved for PayPal Pay in 4 so you can make that payment you've been looking to make but couldn't qualify for Pay in 4.