PayPal, a leading global digital payments platform, has launched PayPal Pay in 4—an interest-free, no-fee buy now, pay later (BNPL) solution for Canadians.
The new product arrives just in time for the holiday shopping season, offering consumers greater flexibility as they prepare for major sales events including Black Friday, Cyber Monday and Boxing Day.
The launch of Pay in 4 comes in response to rising consumer demand for transparent and flexible payment options. PayPal’s 2025 Festive Spending Survey found that 60% of Canadians who have not yet used BNPL would be encouraged to try it if no fees were involved.
The company aims to empower consumers to manage their budgets more effectively while supporting businesses through higher conversion rates and sales during peak periods.
The offering allows shoppers to split eligible purchases between $30 and $1,500 into four equal, interest-free instalments over six weeks.
Customers can fund their payments through debit, credit or bank accounts, and have the flexibility to pay early through the PayPal app or online. The instalment plan is designed to make budgeting more manageable without hidden costs or late fees.
The product also offers enhanced consumer protection. Eligible Pay in 4 transactions are covered by PayPal’s Purchase Protection, ensuring peace of mind when orders don’t arrive or differ from their descriptions. The solution is already available across a range of well-known retailers including Sephora, The Home Depot Canada, Expedia, and Ticketmaster.
PayPal noted that businesses benefit as well, as offering PayPal BNPL has been shown to increase conversion rates by up to 90% globally and lift order values by 80%. By promoting BNPL options earlier in the checkout process, merchants can reduce cart abandonment and enhance the overall shopping experience.
PayPal’s research also revealed insights into Canadian consumer behaviour. Around 74% of Canadians set a holiday shopping budget and try to stick to it, while 72% plan their purchases in advance. More than half expect to spend the same as last year, with 14% planning to spend more. Categories most likely to see BNPL use include appliances (31%), home décor (30%) and electronics (26%).
PayPal general manager, small business and financial services Michelle Gill said, “PayPal has served Canadians for over 15 years and is one of the most trusted brands across the country. To meet demand for transparent and trusted payment options, PayPal’s Pay in 4 helps Canadians manage cash flow without late fees or hidden costs. Businesses also benefit as those who offer PayPal BNPL offerings experience increased conversion and higher sales—both critical during peak holiday season.”
Financial commentator and former CTV chief financial commentator Pattie Lovett-Reid said, “We’re all feeling the pinch a little right now and Canadians are planning ahead. They want to enjoy the holidays, but they’re also being smart about how they manage their finances. Having flexible payment options that give you some breathing room, without fees or interest, is a great way to manage cashflow.”
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