PayPal says it will let customers get away with late payment fees as competition is creasing in the market.
The most recognised and trusted payment solutions for web and mobile said will no longer charge customers late fees when they miss payments on buy now, pay later purchases globally, as competition heats up in the fast-growing industry.
The company entered buy now and pay later (BNPL) last year to compete with the likes of Square Payment Solutions. PayPal is encouraged the changes will help make its products more affordable and attractive for consumers.
“We felt late fees were hindering the customer experience,” Greg Lisiewski, vice president of Global Pay Later Products at PayPal.
“We think that is appropriate, and we do think late fees will be, and have been, part of that discussion, and we think being as customer friendly as possible puts you in a better place with regulators,” said Lisiewski.
The California based company said changes will be effective from October in the United States, the United Kingdom and France. PayPal’s BNPL services in Germany and Australia are already free of late fees.