Business

Buy now, bills increased sharply later on Black Friday

PayPal CEO Dan Shulman told CNBC reporter Jim Kramer on Tuesday that the company’s use of the now, pay later purchase has skyrocketed on Black Friday.

In an interview with Mad Money, Schulman said PayPal’s hire-purchase service is “actually one of the stars of the holiday season for us.”

“During Black Friday, our shopping volume now, payment later increased by almost 400% compared to last year. We alone made about 750,000 transactions in one day on Black Friday, ”Schulman said, referring to the day after Thanksgiving, which is a key part of the holiday shopping season.

The activity on Black Friday continues the trend that PayPal saw throughout November, Shulman said. This is the first time that the company has recorded more than $ 1 billion in processing volume through the “buy now, pay later within one month” option.

“We made over 1 million new users for the first time in a month,” he added, estimating the total usage of “over 10 million consumers.”

During the coronavirus pandemic, it is increasingly popular among consumers to buy now, pay later, and financial technology companies are looking to grab a piece of the heated market. Leading players in this space include Affirm, which struck a blockbuster partnership with Amazon in August, and Swedish startup Klarna.

PayPal has launched an installment payment option in the US called “Pay in 4”. at the end of 2020, which allows you to pay for certain purchases with more than four interest-free payments. In September, PayPal also announced plans to acquire Japanese firm Paidy for $ 2.7 billion.

Not only is PayPal seeing a jump in shopping now, pay later this holiday season. Worldwide use of this payment method during Cyber ​​Week – from November 23 to Monday – jumped 29% year-over-year, according to Salesforce data. Specifically, Salesforce reported on Black Friday that 7% of global orders and 4% of US orders were using a short-term installment option.

Lauren Thomas of CNBC contributed to this report.

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