At present, the major mobile payment platforms not only provide convenient online payment functions, but also begin to provide more and more financial services.
PayPal will launch its installment shopping (BNPL) service in Australia in June, taking further market share away from Afterpay and others, the US payment platform PayPal said on March 10, according to media reports.
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Well, now the service is really coming.
According to media reports on June 9, payment service giant PayPal has decided to expand its business in Australia from online payment service to credit card payment service, and launch a “buy now pay later” service, in order to strengthen its competitiveness in the Australian market. Market sources believe PayPal’s decision will undoubtedly put pressure on Australia’s “buy now, pay later” service providers and banks.
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At present, the leading players of BNPL service in the Australian market include Afterpay, Zip Co Ltd and Klarna from Sweden. PayPal’s entry will undoubtedly pose a severe challenge to these companies.
PayPal will offer both interest-free and short-term payment services as well as long-term and non-interest-free credit card products. This is in line with companies like Zip, Humm, and Klarna, while Afterpay offers only four installments.
Paypal’s Australian credit card will be available from mid-July and will earn points for purchases made at more than 110,000 stores in Australia and millions of stores around the world. In addition, there are a variety of rewards for using PayPal credit card, such as merchants’ own discounts, cash rebates or bonus points from shopping websites.
The Australian government’s regulation of installment shopping is relatively weak compared to other areas of consumer finance, but the Australian market has been more receptive to such services than other regions.
Retail payments data released by the Reserve Bank of Australia on Monday showed a 29 per cent year-on-year drop in credit and prepanded-card transactions, but PayPal said many of its 9.1 million active customers in Australia still wanted credit cards, especially in credit card with no annual fee and under the condition of the credit card consumption have rewards performance.