What is PayPal Pay in 4?

If you want an item now, but don’t want to pay the full amount upfront, then PayPal’s Pay in 4 could be an interesting solution.

As the name suggests, it allows PayPal users to spread out payments for any goods or services purchased online. You simply apply for short-term credit when you leave, then repay the cost in four installments.

Since its launch in late 2020, Pay in 4 has proven popular, claiming, in theory at least, to help you stay in control of your budget. It has also joined a growing number of other so-called Buy Now, Pay Later (BNPL) installment plan services – the biggest being Klarna, Afterpay, Affirm, Clearpay, Settle and Laybuy.

But is Pay in 4 for you? We’ll take a look.

How to apply for Pay in 4

Pay in 4 is available in many US states and Australia. Millions of retailers offer the ability to purchase items using the service, including Best Buy, Bose, Sonos and Target.

To apply for Pay in 4 Short Term Credit, you must be at least 18 years old or the age of majority in your state and have a PayPal account. If so, the process is quite simple.

1. After adding items to the online retailer’s cart, go to checkout and click the PayPal Pay Later option.

Screenshot showing PayPal Pay 4 steps

(Image credit: PayPal)

2. Log into your PayPal account when prompted.

Screenshot showing PayPal Pay 4 steps

(Image credit: PayPal)

3. Select Pay in 4, which should be listed as an option.

Screenshot showing PayPal Pay 4 steps

(Image credit: PayPal)

Screenshot showing PayPal Pay 4 steps

(Image credit: PayPal)

4. You can now view your payment plan. If you’re okay with that, click Continue. Once you have confirmed your details, your request should be approved immediately.

Screenshot showing PayPal Pay 4 steps

(Image credit: PayPal)

How much will Pay in 4 from PayPal cost me?

PayPal Pay in 4

(Image credit: PayPal)

Absolutely nothing. One of the great things about Pay in 4 is that it makes money by charging the retailer a small fee to enable the transaction. You don’t pay a penny, so you get an interest-free loan. It is one of the few installment plans that does not cost the buyer anything extra.

You don’t need to pay any setup fees and there are no late fees either. Just pay your first installment right away, then pay the rest on the set dates.

These payments are taken from the debit card, credit card, or bank account you specified when you requested Pay in 4. Oh, and the request doesn’t affect your credit score either – Pay in 4 only does a smooth credit check.

Can I use my PayPal balance to repay the loan?

No. You must ensure that there is sufficient money available on your cards or in your bank account. If a payment is not made, the debt will not suddenly be erased. You would always be expected to pay the cost of the item or service.

How often should I repay?

You must make the remaining three payments every two weeks. This timeframe is convenient for many Americans, who get paid every two weeks, and it means the short-term loan is done and dusted off within six weeks.

The actual dates and amounts you must pay are clearly detailed when you request payment in 4. You can, however, make additional or unscheduled payments. You can even log into your PayPal account and pay all at once if you feel comfortable.

Is there a spending limit for Pay in 4?

You cannot use Pay in 4 if your purchases are less than $30 and the value of your cart cannot exceed $1,500.

What if I don’t like what I bought?

First, you’ll get PayPal’s Purchase Protection on any items you buy using Pay in 4. But if you just want to return an item or cancel a service, you do it the same way you would. always: by contacting the retailer or service provider.

It is up to one of them to reimburse you. If they don’t do it soon, you’ll have to keep making your payment in 4 installments in the meantime.

Can I use PayPal’s Pay in 4 in the UK?

PayPal Pay in 3

(Image credit: PayPal)

Yes – well, sort of. PayPal in the UK doesn’t actually offer Pay in 4. Instead, they offer you Pay in 3. In other words, you’ll have to spread your payments over just three instalments.

Although it might sound a little mean, PayPal doesn’t expect you to make a payment every two weeks. Since most people in the UK are paid monthly, you will make payments on the same date each month. Many UK retailers have already signed up for Pay in 3.

If you like the sound of Pay in 4 (or Pay in 3), you should know how to create a PayPal account. You might also be wondering if PayPal is safe to use? and we can also help you explain the difference between PayPal Goods and Services and PayPal Friends and Family.

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