PayPal scraps late fees
PayPal Holdings will no longer charge customers late fees when they miss payments on buy now, pay later (BNPL) purchases globally, as competition heats up in the fast-growing sector. The changes will be effective from October in the United States, the United Kingdom and France, the San Jose, California-based company said on Wednesday. PayPal’s BNPL services in Germany and Australia are already free of late fees. The company, which first started offering BNPL services last year, hopes 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, said in an interview. The changes come as more regulators across the world take a closer look at the fast-growing BNPL sector in a bid to ensure consumers do not take on more debt that they can handle. “Given the massive rise and acceleration through the pandemic of this space, regulators across all geographies are taking notice,” Lisiewski said.
Published in The Express Tribune, August 19th, 2021.
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