Paypal counters Klarna: Now 0% interest on installment payments – this is important to note!
From now on, no interest will be charged on PayPal installment payments. For whom the campaign is worthwhile and what needs to be considered.
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Paypal removes interest on installment payments – temporarily.
Paypal is canceling interest on all installment payments with immediate effect and until June 26, 2022. This allows PayPal users to pay off all their purchases in installments over 6, 12 or 24 months without having to pay the usual interest rate of 9.9 percent (effective annual interest rate). Paypal introduced installment payments in September 2019 (we reported).
Paypal is thus countering its competitor Klarna, which has also been offering interest-free installment payments for a few weeks. However, PayPal’s offer is limited in time, while Klarna is a permanent offer.
In an e-mail we received, Paypal had already announced the campaign to its customers last week. There it says:
“Plan your next big purchase now and benefit from PayPal installment payments at zero cost from May 16, 2022 to June 26, 2022. Choose from 3, 6, 12 or 24 monthly installments and finance your summer highlights .”
It is important to note that
As always with financing offers, it is important to take a look at the “small print”. The time-limited promotion applies to PayPal for all purchases from 99 euros and up to 5,000 euros. In addition, a credit check is always carried out in advance. In addition, Paypal points out that a special repayment or early repayment without a surcharge is possible at any time.
All installment payments are available directly from the Paypal app, and there users also receive an overview of all their upcoming installment payments, as well as the amounts already repaid. In addition, even with installment payments, all purchases are protected by Paypal buyer protection. All further information on 0% financing for installment payments can be found here on this Paypal page.
For whom the 0% financing is worthwhile
Paypal 0% financing for installment payments is of interest to Paypal customers who are now planning larger purchases. After all, fall for until June 26, 2022
started (!)
Installment payments do not charge interest.
Many products are currently becoming more expensive, which is not least due to high inflation. Most recently, the Federal Statistical Office reported an inflation rate of 7.4 percent for April 2022 compared to the same month last year. For the second month in a row, the inflation rate reached a new high in reunified Germany. With the 0% financing, you can save if the purchased product should become more expensive in the coming weeks and months. The PayPal campaign is particularly interesting for bargain hunters if the seller offers payment via PayPal.
Reading tip:
These fees are due when using PayPal
