PayPal Pay In 4 Review 2024 (2024)

PayPal Pay in 4 lets you split up payments on your purchases at eligible online retailers into four equal payments. You’ll make the first payment upfront and pay the remaining ones every two weeks for a total repayment period of six weeks.

For example, let’s say you were buying an item for $400. You’d pay $100 at checkout, and then three additional payments of $100 in two-week intervals. PayPal Pay in 4 does not charge any interest, origination fees, late fees or other fees.

Note that PayPal Pay in 4 is only available on certain goods at select merchants where PayPal is accepted. You must hold a PayPal account and link up an accepted payment method, such as a bank account, credit card or debit card.

You can select PayPal Pay in 4 at checkout and receive an instant decision about your approval. PayPal will run a soft credit check at the time, but this won’t impact your credit score. If you’re approved, you’ll need to sign a loan agreement that outlines the details of this point-of-sale service.

Related:Best Buy Now, Pay Later Apps

PayPal Pay in 4 is best for shoppers who:

• Want to spread out payments on a purchase over time. If you don’t want to pay the full purchase price upfront, PayPal Pay in 4 lets you split up the payment over a month and a half.
• Have strong enough credit to qualify. PayPal will run a soft credit check before approving you.
• Have a PayPal account in good standing. You must have a PayPal account to use this service.
• Are new to BNPL arrangements. Since PayPal Pay in 4 only offers a single payment plan, it’s a simple and straightforward way to test out this type of point-of-sale installment loan.
• Want the security of purchase protection. PayPal guarantees a refund on eligible purchases if there’s a problem with the item or if it never arrives.

PayPal Pay in 4 might not make sense for you if you:

• Aren’t sure you can afford the biweekly payments. If you find yourself overspending due to BPNL options, it might be better to limit your transactions to ones you can pay in full upfront.
• Are looking to spread out payments for a longer period than six weeks. Some other BPNL services offer a greater variety of repayment options than PayPal’s four-payment plan.
• Want to make a purchase greater than $1,500. Only purchases between $30 and $1,500 are eligible.
• Are younger than 18. You must be at least 18 to qualify.
• Live in a nonparticipating state. PayPal Pay in 4 is not currently available to residents of Missouri, Nevada, New Mexico, North Dakota, Wisconsin or any U.S. territories.

If you’d like to use PayPal Pay in 4, you can select it at checkout on eligible purchases with participating online merchants. Some popular stores that accept PayPal Pay in 4 include Target, Best Buy and Bed Bath & Beyond.

You’ll read over a loan agreement and submit a simple application with some personal details. Then, you’ll get an instant decision about whether or not you’ve been approved.

You’ll pay 25% of the purchase price upfront. PayPal will then charge your same payment method 15 days later, plus two more times after that.

Costs

There are no costs associated with PayPal Pay in 4. While this service is a point-of-sale installment loan, it does not charge interest, origination fees or late fees. There are also no penalties for paying off the purchase early.

That said, you could rack up fees from your bank if you overdraw on your account or interest from your credit card company if you don’t pay off your charges within the month.

Eligibility

To be eligible for PayPal Pay in 4, you must purchase an eligible item that costs between $30 and $1,500 from a participating online merchant that accepts PayPal. You also must be at least 18 years old and live in an eligible state. Finally, you must pass PayPal’s soft credit check or your application for Pay in 4 could be denied.

Purchase Protection

PayPal offers purchase protection on eligible transactions that you make with PayPal Pay in 4. If there’s a problem with the item you ordered (or you don’t receive it), you can let PayPal know within 60 days and it may refund your purchase price and shipping costs.

When you’re shopping online, keep an eye out for the PayPal Pay in 4 option at checkout. After selecting it, read over the terms of the loan agreement. Then, fill out PayPal’s short application and wait for a decision.

If you’re approved, you’ll select your payment method and make your first payment. It could be worth noting the dates of your next three payments in your calendar so you know when to expect them.

If you’re using your bank account as your payment method, make sure there’s enough in your account to cover these automatic withdrawals. If you opt for a credit card, keep an eye out for the charges and try to pay them off in full each month so you don’t accrue interest charges.

Once you’ve made your fourth and final payment, you will have paid off your loan in full and no longer have to make payments.

While there aren’t many customer reviews of PayPal’s Pay in 4 service, thousands of reviewers have left comments about PayPal on sites like Better Business Bureau (BBB), TrustPilot and Consumer Affairs.

Overall, many customers cite negative experiences with PayPal, with the company receiving a 1.07 out of 5 stars based on 2,304 reviews on the BBB website and 1.2 out of 5 stars based on over 21,000 reviews on TrustPilot.

Customers complained about expensive fees, technical issues and unhelpful customer support. Others said it took a long time to send and receive money through PayPal.

That said, PayPal fared better on Consumer Affairs, receiving a 3.7 rating out of 5 stars based on more than 2,700 reviews. One satisfied customer wrote that PayPal processed a refund for them immediately when the item they ordered from another site was “an overpriced piece of junk.” Another said they’ve been using PayPal since 2001 without a single problem.

As mentioned, these reviews cover a variety of PayPal services and are not specifically describing PayPal Pay in 4.

PayPal Pay in 4 isn’t your only option for BPNL services. Consider these three alternatives.

Klarna

Like PayPal Pay in 4, Klarna lets you split up your purchase into several monthly payments. Klarna offers a few more payment options than PayPal does, including Pay in 4 and Pay in 30, both of which don’t charge interest. You can also opt for Klarna financing if you want up to 36 months to pay back your purchase, but this option might come with interest charges up to 24.99%.

The amount you can finance with Klarna depends on your finances. Klarna might be a superior option to PayPal Pay in 4 if you want more payment options. However, unlike PayPal Pay in 4, Klarna charges late fees.

Afterpay

Afterpay works similarly to PayPal Pay in 4, in that it has you make four payments over a period of six weeks. Rather than setting a specific spending limit, however, Afterpay extends credit to consumers based on their unique finances. It also charges late fees for late payments, which could amount to 25% of the purchase price of the item.

To use Afterpay, you can download its free app and choose it as your payment method. While PayPal Pay in 4 is only available online, you can use Afterpay online or in-person at stores.

Splitit

Splitit offers a unique approach to BNPL. Instead of requiring you to take on an installment loan, it lets you use a credit card that you already own to split purchases into multiple payments. Through Splitit, select merchants will charge your credit card a portion of the total payment until it’s paid off.

Depending on the price of the item, you may be able to pay it off anywhere from three months to two years. You won’t have to pay interest or fees to use Splitit, but your credit card may charge interest if you don’t keep up with your monthly payments.

If you’d rather use one of your existing credit cards than take out a point-of-sale loan, Splitit may be a preferable option to PayPal Pay in 4.