How does BNPL benefit merchants?

BNPL helps increase average basket sizes and conversion rates, boosting merchant sales.

Who are PayPal's competitors in BNPL?

Main competitors include Affirm, Klarna, and Afterpay (owned by Block).

Did PayPal announce new markets for BNPL expansion?

PayPal has not disclosed specific new markets yet; the service is currently available in the US, UK, and Australia.

PayPal Expands BNPL to Boost Checkout Basket Sizes

PayPal (PYPL) is expanding its Buy Now, Pay Later (BNPL) service to strengthen its branded checkout and attract more shoppers. The move aims to boost merchant sales and increase average basket sizes.

July 7, 2026

2 min read

Source: Zacks

PayPal Holdings (NASDAQ: PYPL) announced an expansion of its Buy Now, Pay Later (BNPL) service to strengthen its branded checkout offering, attract more shoppers, and help merchants boost sales. The expansion comes as strong adoption of BNPL leaves room for further growth.

The Product

PayPal's BNPL allows shoppers to split purchases into interest-free installments, often with no late fees. The new expansion aims to integrate the service deeper into the checkout experience, increasing conversion rates and average order values.

Pricing and Availability

PayPal did not disclose specific pricing changes or new markets. The service is currently available in key markets such as the US, UK, and Australia, with further expansion expected.

Competition

PayPal faces strong competition from Affirm, Klarna, and Afterpay (owned by Block). However, PayPal's massive user base of over 400 million active accounts gives it a competitive edge.

Potential Impact

Expanding BNPL could boost revenue from merchant fees and increase user engagement. However, it also introduces credit risk if not managed carefully.

Frequently Asked Questions

PayPal's Buy Now, Pay Later (BNPL) allows shoppers to split purchases into interest-free installments.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.