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October 15 2020

PayPal enters UK’s market with Klarna like product

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PayPal launches a new buy now, pay later product in the UK allowing users to pay in three instalments over a short period.

Read also: N26 eyes funding at $3.5B valuation

“Pay in 3” will allow online shoppers to make three interest-free payments for purchases between £45 and £2,000. This option is very similar to Klarna’s product, and to other products from companies like Laybuy and Afterpay/Clearpay.

PayPal has already launched Pay in 4 program in the U.S. and the Paiement in 4x in France this year.  PayPal enters the U.K. market with a similar goal set: to bring PayPal tools and products to merchants to help them tackle the continual challenges of “growing sales and converting customers.”

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In the UK, it’s signed up a number of British retailers to offer the service, including Crew Clothing, French Connection, Robert Dyas and Ryman.

“What we’ve seen over last 6 months or so is a significant rise in the shift from physical to digital transactions across the whole of the U.K. retail base,” Rob Harper, PayPal’s U.K. director of enterprise accounts, told CNBC in an interview.

“We’ve also seen the rise of buy now, pay later solutions in the market; brands like Klarna, but also smaller brands that are entering into the market that are not as recognizable as PayPal,” he added.

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