PayPal says it is adding new features to its buy now, pay later (BNPL) offering.
To promote this new effort, the company announced Thursday (April 10), PayPal is rolling out an ad campaign featuring comedic actor Will Ferrell, due to launch this month.
“Will’s signature humor will be on display as he embarks on a shopping journey to show all the ways you can pay with PayPal now and over time, with Pay Later available at merchants that accept PayPal,” the company said in a news release.
According to the release, this follows several updates designed to ease the PayPal checkout process, such as the ability to log in with biometrics and tap-to-pay options in partnership with Mastercard that let customers earn cash back.
The company is also launching what it calls its largest-ever sweepstakes with “The Great PayPal Checkout,” giving $10 million away by covering the purchases of up to $100 for 1,000 PayPal users for a 100-day stretch.
“Payments are no longer an afterthought, they’re a central driver in determining how consumers shop,” said Geoff Seeley, PayPal’s chief marketing officer. “With millions of consumers selecting PayPal every day, we’re committed to raising the bar and delivering an incredible, flexible, and rewarding experience that connects our customers to the things they want and love.”
Elsewhere in the pay-later space, recent research by PYMNTS Intelligence explores the popularity of BNPL among more affluent consumers, who use this payment method for both “need-to-have” and “nice-to-have” purchases.
While BNPL has cultivated an image of the favored method of cash-strapped consumers, the data shows a different reality, with 61.4% of Americans making more than $100,000 a year using this method for everything from designer clothing to porcelain veneers to overseas travel.
“While it’s not surprising that having more disposable income correlates with more spending on non-essentials, 13.5% of higher earners are using the payment method out of necessity,” PYMNTS wrote. “Maybe they have maxed out their credit cards and have an expensive auto repair. Maybe the card they want to use comes with perks and rewards that they want to tap into for another purchase.”
What’s clear, that report added, is that the alternative credit option has become mainstream for the bulk of higher earners. For example, last December, Klarna, a major player in the BNPL sector, announced partnerships with luxury retailers Neiman Marcus and Bergdorf Goodman.
