PayPal’s Pay in 4 will launch in Canada ahead of a festive period that has Canadians preparing their spending more than in previous years.
PayPal announced the launch of its new Buy Now, Pay Later (BNPL) offering ‘Pay in 4’ in Canada on November 10.
Canadian consumers will be able to spread the cost of payments between $C30-C$1500 into four interest-free instalment payments over a six week period.
PayPal’s offering also comes with no late fees, sign-up fees or ‘hidden costs’.
Customers can fund payments via their debit and credit cards, as well as bank account transfer. They can also pay early through the PayPal app.
The offering will be available via the checkout when using PayPal at online retail stores, such as Knix, Sephora, The Home Depot Canada, Ticketmaster among others.
Purchases are covered by PayPal’s Purchase Protection service if payments are not settled or do not match within the statement.
In its launch statement, PayPal stated BNPL “is no longer a nice-to-have – it’s what consumers expect”. The global payment company revealed its BNPL offering drives conversion with 90% approval rates and the added flexibility helps reduce cart abandonment.
“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,” said Michelle Gill, General Manager of Small Business and Financial Services at PayPal.
“Businesses also benefit as those who offer PayPal BNPL offerings experience increased conversion and higher sales—both critical during peak holiday season.”
A timely launch
Pay in 4 launches in Canada in time for the upcoming festive shopping season, with expectations for higher retail transactions across Black Friday, Cyber Monday, Christmas Day and Boxing Day.
BNPL has also become an increasingly popular payment method amongst Canadians. According to PayPal research, laid out in the press release, 31% of Canadians would consider using BNPL for shopping on appliances, 30% on home furniture, and 26% on electronics.
The payment method has surged in global popularity in the advent of the Covid pandemic, enabling consumers to spread costs monthly or weekly to help budget.It is especially popular amongst the younger generation.
PayPal found 74% of Canadians set a budget before shopping during the festive season, with 72% planning their shopping in advance to help control spending.
“We’re all feeling the pinch a little right now and Canadians are planning ahead,” said Pattie Lovett-Reid, Financial Commentator and former CTV Chief Financial Commentator, to PayPal.
“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.”
Who will win the BNPL battle for Christmas in Canada?
While PayPal expanding its Pay in 4 service in Canada will look to help boost conversions for its BNPL offering, it also faces fierce competition in a market which has several key players.
BNPL companies such as Klarna, Afterpay and Affirm have all held a presence in the Canadian market for several years and are some of the most trusted players in the space.
However, despite the three aforementioned companies being global dominant players, it is Sezzle that is Canada’s most popular BNPL service.
The alternative payment solution announced in February 2025 it was “Canada’s favourite BNPL app”, attributing this to its user experience, interest-free payment options, and transparent credit tools.
With Canadians growing more cautious over their spending this upcoming festive period, PayPal, Sezzle and the rest of their competitors will be competing to gain the trust of those consumers.
