PayPal, Wix Team on Pay Later Offerings for Merchants

PayPal will let merchants on Wix offer buy now, pay later (BNPL) options PayPal in 4 and PayPal Credit through a checkout button, the company announced Wednesday (Dec. 1).

“As we head into the holiday shopping season, business owners need to do everything they can to increase their sales conversions and offering Pay Later solutions is one way to do it,” said Greg Lisiewski, vice president of Global Pay Later at PayPal. “Businesses need help in order to recover from the past 18 months — and by providing PayPal Credit and Pay in 4, they have one more tool to do so.”

The release says that online retailers totaled $8.9 billion in sales on Black Friday 2021 and purports that the new combined Wix and PayPal offerings will allow for greater payment volumes.

PayPal’s Pay Later will add more merchant options and is designed to offer consumers flexible and predictable payment methods, offering them more choices in their checkout experiences.

Amit Sagiv, co-head of payments at Wix, said the demand for payment options has increased along with the need for eCommerce.

Sagiv said these flexible pay options will help merchants “reach more customers by providing them with more options at checkout and ultimately increasing their conversion,” per the press release.

PYMNTS recently reported that PayPal is facing competition, with the company’s grade having been lowered from outperform to market perform.

Read more: Analyst Downgrades PayPal, Cites Competition

That came with Bernstein analyst Harshita Rawat saying there might be more aggression from rivals, including Amazon and Spotify, offering similar products. Rawat said the two companies make up around 32% of all the commerce in America.

PayPal risks losing its status to competition, because of smaller rivals like Shopify, and growth in PayPal might not be ironclad, either.

There could be market shares slowing things down because of auto-fill credit cards on internet browsers, and Apple Pay and BNPL could pose challenges.