PayPal has officially launched PayPal Pay in 4, an interest-free, no-fee “buy now, pay later” (BNPL) option for Canadian shoppers. Just in time for the holiday season, the new service gives consumers the flexibility to spread their payments over six weeks, making it easier to manage expenses during the busiest shopping period of the year.
With Pay in 4, Canadians can split eligible purchases from $30 to $1,500 into four equal, interest-free payments. Payments are automatic, simple to track, and can be funded using a debit card, credit card, or bank account. Shoppers can even choose to pay off their purchases early through the PayPal app or website no hidden fees or penalties involved.
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PayPal’s 2025 Festive Spending Survey highlights that nearly 60% of Canadians who haven’t used BNPL before would consider doing so if there were no fees. Pay in 4 directly addresses this demand by offering a transparent and predictable payment structure, helping shoppers stretch their holiday budgets further.
Michelle Gill, General Manager of Small Business and Financial Services at PayPal, explained, “PayPal has been serving Canadians for over 15 years and remains one of the country’s most trusted brands. With Pay in 4, we’re giving Canadians a smart, transparent way to manage cash flow—without late fees or hidden costs. It’s a win-win for both consumers and businesses, especially during the holiday rush.”
Businesses offering PayPal’s BNPL solutions also stand to gain significant benefits. The company reports a 90% global approval rate for BNPL transactions, along with up to 80% higher average order values. By showcasing flexible payment options earlier in the shopping journey, businesses can reduce cart abandonment and improve conversion rates key advantages during Black Friday, Cyber Monday, and Boxing Day sales.
PayPal’s Festive Spending Survey also found that Canadians are becoming more deliberate about how they spend. Nearly three-quarters set budgets and plan their shopping in advance, with 51% expecting to spend about the same as last year. Many shoppers are also considering BNPL options for big-ticket items like home décor, furniture, and electronics.
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Financial commentator Pattie Lovett-Reid added, “Canadians want to enjoy the holidays but are being smart about their finances. Flexible payment options like PayPal Pay in 4 offer breathing room without added costs helping people manage cash flow more confidently.”
To make the season even more rewarding, PayPal has partnered with Cadillac Fairview to enhance the shopping experience at major malls across Toronto, Montreal, Calgary, and Vancouver. Shoppers can join in-person pop-ups and play online games through the ‘Pay in 4, Play in 4’ campaign for a chance to win up to $1,000 in prizes.
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As Canadians gear up for the holidays, PayPal Pay in 4 promises to make shopping simpler, safer, and more flexible helping both consumers and businesses thrive in a busy retail season.
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