SYDNEY (AUSTRALIA) – Paypal’s “buy now, pay later” (BNPL) option will be launched in Australia this June. The US payments giant said on Wednesday, muscling in further on Afterpay Ltd and others for a share in the booming industry.
So far PayPal’s new BNPL option has been rolled out in the United States and Britain. Â PayPal Holdings Inc has informed that it handled more than $750 million of transactions in these countries till December last year.
The US payments giant also plans to bring in interest-free “Pay in 4” service to its more than 9 million customers in Australia as the country’s regulation of fast-growing space is thin compared to other consumer finance categories. However, as the adoption is higher than in other markets, the company is approaching it as a potential market.
Andrew Toon, the general manager of payments at PayPal Australia, said that the company had been “inundated” with requests from Australian merchants and businesses after the offshore launch of its BNPL service last year.
PayPal planned to capitalise on its long-standing relationships with Australian merchants but not to the point of seeking exclusive arrangements that would muscle out other BNPL providers, Toon added.
Steven Ng, the co-founder and senior portfolio manager at Ophir Asset Management, which owns Afterpay shares said, “The big question is whether (PayPal) gain incremental sales as in a potentially different customer base, or do they simply take share away from incumbents.