PayPal Enhances Digital Installment Solutions with the Launch of “Pay in 4” with No Fees in the Canadian Market
PayPal has launched a new installment service called PayPal Pay in 4 in the Canadian market. The service falls under the “Buy Now, Pay Later” (BNPL) model, allowing consumers to split their purchases into four equal payments over six weeks with no interest or fees. The launch comes at a strategic time, coinciding with the holiday shopping season and major discount events such as Black Friday, Cyber Monday, and Boxing Day, which enhances payment flexibility for consumers and makes online shopping more convenient.
Financial Flexibility for Consumers
The service allows users to purchase products from a wide range of well-known brands in Canada, including Knix, Samsonite, Sephora, Silk & Snow, The Home Depot Canada, Expedia, Hotels.com, Ticketmaster, and more.
It offers consumers the ability to split purchases ranging from CAD 30 to CAD 1,500 into four interest-free installments. Payments are deducted automatically from the user’s bank account or debit/credit card, with the added option of early repayment through the PayPal app or website.
No Fees or Hidden Costs
The service is based on a transparent model with no late fees, no subscription fees, and no hidden charges. All eligible purchases are covered by PayPal’s Purchase Protection Program, which ensures consumers can receive a refund if an item is not delivered or does not match its description—providing an additional layer of safety and trust in online shopping.
Supporting Businesses and Increasing Sales Conversions
Pay in 4 helps increase checkout completion rates and boost average order values. According to PayPal’s data, global approval rates for this service reach around 90%, and it can increase average order value by up to 80%. This represents a significant advantage for merchants, especially during the holiday season when purchase volumes rise sharply.
Consumer Trends in the Canadian Market
Findings from the 2025 Holiday Spending Survey show that a large portion of Canadian consumers depend on financial planning during the holiday season:
- 74% set a specific budget for holiday shopping
- 72% prefer shopping early to avoid overspending
- 51% expect to spend the same amount as last year
- 14% plan to spend more
Regarding BNPL usage, consumers expressed willingness to use these services for:
- Home appliances (31%)
- Furniture and home décor (30%)
- Electronics (26%)
The survey also shows that 60% of respondents who have never used BNPL services would be willing to try them if offered with no fees—something PayPal now provides.
The launch of PayPal Pay in 4 in Canada marks a significant expansion in modern payment solutions and reflects consumer demand for flexible and secure ways to manage expenses during peak shopping seasons. This offering strengthens PayPal’s position as one of the most trusted brands in the Canadian market, delivering a digital shopping experience that balances ease of use with full protection for both consumers and businesses.
