PayPal Brings No-Fee Buy Now Pay Later Offering to Canada

Rhea-AI Summary

PayPal (PYPL) launched PayPal Pay in 4 in Canada on Nov 10, 2025, an interest-free, no-fee buy now, pay later option for purchases between $30 and $1,500. The service splits eligible purchases into four equal, automatic payments over six weeks with debit, credit, or bank funding and early-pay options via the PayPal app or online.

The rollout covers millions of Canadian and global retailers and highlights survey data: 60% of non-BNPL users would try BNPL if there were no fees; PayPal cites a 90% global approval rate and 80% higher order value for merchants using BNPL.

Positive

• Launch date: Nov 10, 2025 entry into Canada
• Eligible purchase range: $30–$1,500
• No late fees, sign-up fees, or interest for consumers
• 90% global approval rate cited for PayPal BNPL
• 80% higher order value for merchants offering PayPal BNPL
• 60% of surveyed Canadians more likely to try BNPL if no fees

Negative

• Eligible purchase cap of $1,500 limits use for larger purchases

Insights

Payments strategist

PayPal launches interest-free, no-fee Pay in 4 in Canada ahead of the holiday season, expanding BNPL access for consumers and merchants.

PayPal Pay in 4 lets Canadians split purchases from $30 to $1,500 into four equal, interest-free payments over six weeks, with no late or sign-up fees and automatic payment options via debit, credit, or bank account. The feature includes Purchase Protection and will roll out across millions of online Canadian and global merchants, timed for Black Friday, Cyber Monday, and Boxing Day starting Nov. 10, 2025. The announcement cites a 60% survey interest boost among non‑BNPL users if no fees exist, a 90% global approval rate for PayPal BNPL, and an 80% increase in order value where BNPL is offered.

The business mechanism is straightforward: adding a no-fee BNPL option can raise conversion and basket size by reducing friction at checkout, while Purchase Protection preserves shopper confidence. Merchant uptake and visible placement at checkout will determine near-term revenue uplift for payment volume and ancillary services.

Key dependencies and risks include merchant integration speed, actual consumer take-up versus survey intent, and operational costs of offering no-fee installments (servicing, fraud, and credit risk). The survey sample size of 1,500 is noted but does not guarantee adoption; the 90% approval and 80% order-value figures are presented as program-level metrics, not Canada-specific outcomes.

Concrete items to watch over the next 3–6 months: merchant adoption rates and share of checkout placements, Canadian consumer take-up and repeat usage, and any disclosed metrics on approval rates or incremental sales lift for Canadian merchants. Also monitor reported eligibility limits, default or dispute rates, and any future fee or policy changes that affect unit economics.

PayPal Pay in 4 brings flexibility with no fees to millions of Canadians  Shoppers benefit from an additional payment option at millions of online stores

TORONTO, Nov. 10, 2025 /PRNewswire/ -- PayPal today announced the launch of PayPal Pay in 4¹, an interest-free, no-fee, buy now, pay later (BNPL) solution for Canadians. Starting this holiday season, Canadian shoppers can access a more flexible payment option across millions of online Canadian and global lifestyle, consumer, and travel brands, just in time for Black Friday, Cyber Monday, and Boxing Day.

Consumers can now make their budget go further with PayPal Pay in 4 at their favourite brands including Knix, Samsonite, Silk & Snow, The Home Depot Canada, Ticketmaster and many others.

PayPal's 2025 Festive Spending Survey reveals strong consumer interest: 60% of respondents who haven't yet used BNPL say they'd be encouraged to try it if there were no fees. PayPal Pay in 4 gives Canadians more flexibility at checkout, letting shoppers split eligible purchases from $30 to $1,500 into four equal, interest-free payments over six weeks. Automatic payments keep everything on track with options to fund the payment including debit, credit, or bank account. If consumers want to pay early, they can do so using the PayPal app or online.

A smart way to shop, just in time for the holidays
With PayPal Pay in 4, there are no late fees, sign-up fees, or hidden costs—just predictable installment payments that make holiday shopping less stressful and more manageable. Eligible PayPal Pay in 4 purchases are covered by PayPal's Purchase Protection², bringing peace of mind to online shopping—whether purchases don't show up, or aren't quite as described. As a leading online payment brand in Canada³, PayPal continues to deliver secure, convenient solutions to meet the needs of both shoppers and businesses.

"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, Small Business and Financial Services, PayPal. "Businesses also benefit as those who offer PayPal BNPL offerings experience increased conversion and higher sales—both critical during peak holiday season."

Better for shoppers, better for businesses

For businesses of every size, BNPL is no longer a nice-to-have—it's what consumers expect. PayPal BNPL drives conversion with 90% global approval rate⁴ and boosts sales with 80% higher order value. By offering PayPal BNPL and showcasing it earlier in the shopping journey, businesses can help reduce cart abandonment and boost conversions, especially during peak shopping seasons. 

PayPal's 2025 Festive Spending Survey: Canadians are deliberate with how they manage their cashflow.

• 74% of Canadians set a budget while holiday shopping and try to stick to it, 72% plan their shopping in advance to help control their spending.
• 51% plan to spend the same as last year, while 14% say they'll spend more.
• 31% of Canadians would consider using BNPL to shop for appliances, 30% for home décor/furniture, and 26% for electronics.

"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. "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."

Making the holidays even more rewarding
This holiday season, PayPal is partnering with Cadillac Fairview, enhancing the holiday shopping experience with the flexibility of PayPal Pay in 4 with online purchases. Shoppers can also participate in festive holiday experiences at Cadillac Fairview malls in Toronto, Montreal, Calgary, and Vancouver throughout the holiday season. Experiences include the 'Pay in 4, Play in 4' in-person pop-up and online game for eligible customers offering people the chance to win up to $1,000 in prizes⁵.

For more details on PayPal Pay in 4 visit: paypal.ca/payin4.

Survey Methodology
PayPal's 2025 Festive Spending Snapshot is an online survey of 1,500 Canadian adults (nationally representative) conducted by Leger in October 2025.

About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com, and https://investor.pypl.com.

Media Contact:
Malini Mitra, malini.mitra@paypal.com
PayPal Media Relations, press@paypal.com

_____________________________

¹ PayPal Pay in 4 is available to approved consumers for purchases of $30 to $1,500 (CAD) for certain transaction types. It will be available as an option in the PayPal wallet for customers with accounts in good standing, subject to eligibility criteria. Availability also depends on the merchant. You must be age of majority in the province or territory where you live to apply. Any transactions in other currencies will be converted to Canadian dollars subject to applicable currency conversion charges. You may repay the amount you owe in full at any time, without any fees or charges.
² PayPal Purchase Protection is available on eligible transactions. See terms and limitations.
³ Source: Ecommerce in Canada report by Statista in 2024. In the poll, Canadian consumers were asked about "Biggest e-commerce payment brands" -- "PayPal" took the top spot with 80% of respondents choosing PayPal.
⁴ Based on PayPal internal analysis occurring July 2022 - July 2023.
⁵ Shoppers get a chance to win up to $1,000 in prizes for the 'Pay in 4, Play in 4' in-person experience. Each shopper gets one chance at playing; if they've used PayPal Pay in 4, they get four chances to play.

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SOURCE PayPal Holdings, Inc.

FAQ

When did PayPal (PYPL) launch Pay in 4 in Canada?

PayPal launched Pay in 4 in Canada on November 10, 2025.

What purchase amounts does PayPal Pay in 4 (PYPL) cover in Canada?

Pay in 4 covers eligible purchases from $30 to $1,500.

Are there fees or interest for PayPal Pay in 4 (PYPL) in Canada?

No—PayPal Pay in 4 is interest-free with no late fees or sign-up fees according to the announcement.

How are PayPal Pay in 4 (PYPL) payments scheduled?

Purchases are split into four equal automatic payments over six weeks, payable by debit, credit, or bank account.

What merchant benefits did PayPal (PYPL) cite for offering BNPL?

PayPal cited a 90% global approval rate and 80% higher order value for merchants using PayPal BNPL.

Does PayPal Pay in 4 (PYPL) include purchase protection in Canada?

Yes—eligible Pay in 4 purchases are covered by PayPal Purchase Protection as noted in the release.