Paypal 3 payments options - supplier paid in 1?

[Frimley111R]

Hi All

If someone pays for something using PP and uses their 'Pay in three instalments' option, does this mean that the company they purchase from gets paid in three instalments or do they get paid in one and PP deals with the payments part?

Thanks

[48k]

The business gets paid up front whilst the customer pays instalments.

A customer can't just unilaterally decide to take the "Pay in 3" option, the business has to sign up to offer it.

[Frimley111R]

48k said:

The business gets paid up front whilst the customer pays instalments.

A customer can't just unilaterally decide to take the "Pay in 3" option, the business has to sign up to offer it.

Ok, thanks. Understood.

[p4cks]

Also worth noting that Paypal take all the risk here too so should the buyer not pay them installment 2 or 3, they have to do the leg work for their money.

[s p a c e m a n]

I bought £4k of fridge, washing machine and tumble dryer from Samsung a few days ago and it let me use PayPal credit over 36 months at 0%. I can't figure out what PayPal get out of it unless Samsung are paying them.

[p4cks]

s p a c e m a n said:

I bought £4k of fridge, washing machine and tumble dryer from Samsung a few days ago and it let me use PayPal credit over 36 months at 0%. I can't figure out what PayPal get out of it unless Samsung are paying them.

You've actually signed up to a Paypal 'credit card' albeit without a physical card. They make their money the same way CC companies do who offer low introduction rates... higher rates once you're out of your intro offer.

Also, be mindful to check on PP what the monthly payment is set at, as it doesn't always cover the total amount of initial borrowing therefore some payments may attract interest later down the line (sneaky fkers)

[s p a c e m a n]

Ooh I've just looked and you're right, they've given me a £6k credit limit and don't appear to have set up any payment schedule yet. Free money

[p4cks]

s p a c e m a n said:

Ooh I've just looked and you're right, they've given me a £6k credit limit and don't appear to have set up any payment schedule yet. Free money

Nope, the clock is already ticking. Once your introductory period ends after 36 months, you will then have to start paying interest on your £4K purchases. You could view it as 'free money' and pay nothing for 36 months but your £4K balance will start accruing interest from month 37.

Did I mention that they were sneaky fkers?

[s p a c e m a n]

Yeah I'll just use them like every other credit card, pay it off before the end and never use it again, just didn't realise that was the setup. Handy because we move house on Monday and 36 months is far into the future.

[Frimley111R]

Spoke to PP this morning but their 3 payments is only for products and we have a product/service which they do not do. Still, worth a try.

[fuzzyyo]

p4cks said:

s p a c e m a n said:

Ooh I've just looked and you're right, they've given me a £6k credit limit and don't appear to have set up any payment schedule yet. Free money

Nope, the clock is already ticking. Once your introductory period ends after 36 months, you will then have to start paying interest on your £4K purchases. You could view it as 'free money' and pay nothing for 36 months but your £4K balance will start accruing interest from month 37.

Did I mention that they were sneaky fkers?

Its not sneaky if you actually read what you're signing up for...

[DSLiverpool]

fuzzyyo said:

Its not sneaky if you actually read what you're signing up for...

It’s deceiving and has caused far more buyer misunderstanding hassle for sellers than Klarna.

P4cks - great insight, personally I’d rather offer Clearpay (afterpay) than either.