PayPal Pay in 4 in Australia. How does it work

Paying for goods/services in instalments is becoming ever popular, with a range of interest-free options available on the market.

For this reason, the PayPal Pay in 4 plan may be of interest to you, particularly if you’re looking to spread the cost of online purchases.

In this article, we’ll explore all the details surrounding the PayPal Pay in 4 service, including its availability in Australia, any limitations/fees for the service, eligibility requirements, plus how the plan can affect your credit rating.

You’ll also learn a bit about the Wise Account and Debit card, and how these options can serve you for international finance.

💸 Hold over 40 currencies in your account and spend at the mid-market exchange rate with the Wise card while abroad.

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Wise Account

What is Pay in 4 by PayPal and is it available in Australia?

The PayPal Pay in 4 plan is a service that allows PayPal customers to divide purchases into 4 interest-free instalments, providing a way of spreading the cost of a transaction without being charged interest.¹

Pay in 4 by PayPal is available to Australian residents with a PayPal account and a valid payment method on transactions between $30 AUD - $2,000.¹

How Pay in 4 works and who can benefit from it

When shopping with selected merchants, the Pay in 4 plan will be available as a payment option when choosing PayPal as the selected payment method. This will enable customers to make an initial payment and arrange to pay three further interest-free instalments every two weeks from the initial purchase date.¹

Features of the Pay in 4 plan from PayPal include the following¹:

• Payments are interest-free
• There are no sign-up fees or late fees
• Available via millions of online sites around the world
• Repay in full at any time
• Security and buyer protection remains the same as with a standard PayPal account

Pay in 4 by PayPal can be used by customers of online stores. It can also be offered as a payment option by online businesses that are looking to provide their customers with the ability to pay for goods in instalments.¹

What are some cons of using Pay in 4 in Australia

As with any payment plan, there are some cons to the Pay in 4 system when used in Australia.

These can be found below²:

• Pay in 4 is available to Australian residents only, so can’t be used if visiting Australia
• Credit score can be affected if repayments are missed
• A credit check is carried out upon application which can impact credit score
• Instalments may not include extra costs such as shipping¹

Read more: PayPal rewards (credit) card in Australia.

Where can you spend/shop using PayPal Pay in 4 in Australia

You can pay via PayPal Pay in 4 via many international and Australian merchants. These include the following¹:

• Optus Smart Spaces
• Simplyenergy
• Harvey Norman
• Myer
• Webject
• Post Billpay

What are the fees for using PayPal Pay in 4 in Australia

There are no fees for using PayPal Pay in 4 in Australia.¹ However, if repayments are missed, the following consequences may be invoked by PayPal²:

• PayPal account may be restricted
• Legal action could be taken against you
• Missed payments could be reported to a Credit Reporting Body which could affect your credit rating moving forwards, potentially making it more difficult to pass credit checks and borrow money in the future

Using Pay in 4 for international payments

While there are no fees for using Pay in 4, there are some elements to bear in mind for international payments.

As the Pay in 4 plan is available in AUD only, transactions that are made in a foreign currency will be converted to AUD before access is granted to Pay in 4.

Currency conversions will then be applied as stated in the PayPal User Agreement. This is charged at 4% for the following transactions³:

• Arranging payment for goods/services in a currency that is different from the currency the goods/services are listed in.
• Refunds received after 1 day of original fee.
• Money sent to family/friends that are received in a different currency from currency you have paid in.
• Money sent using PayPal Payouts whereby the currency is received in a different currency than that which you have paid.

All transactions that do not fall into one of the above categories will incur a currency conversion cost of 3%.³

Repayments with PayPal Pay in 4

When choosing the PayPal Pay in 4 plan as a payment option, you will be required to make one initial payment when purchasing.²

The remaining balance will be payable in 3 equal interest-free instalments, and will automatically be taken every 14 days from your PayPal account via your selected payment method.

You can also repay the amount in full at any time, without being charged fees for doing so.²

What happens if you pay late?

You won’t incur fees if you make late payments on a purchase, however, PayPal may invoke the following consequences²:

• PayPal account may be restricted
• Legal action could be taken
• Missed payments could be reported to a Credit Reporting Body which could affect your credit rating

What are the requirements to access PayPal Pay in 4 in Australia

To access the PayPal Pay in 4 plan, you’ll need to meet the following requirements²:

• You must be a resident of Australia
• You must be 18 or over

You must hold valid, verifiable examples of the following:

• Australian address
• Email Address
• Phone Number
• You must hold a PayPal account with a valid payment method/bank account

How to use this service to make payments

To pay with the Pay in 4 plan, you’ll need to choose the ‘Checkout with PayPal’ option when checking out with an eligible retailer. PayPal Pay in 4 will show as a payment option if that business offers this plan.¹

Once you’ve selected this option, you’ll be required to make an initial payment at the time of purchase, and the remaining 3 payments will be required every two weeks.¹

Payments will be taken automatically via your selected payment method within your PayPal account.²

What are the payment limits with Pay in 4

The PayPal Pay in 4 plan is only available for purchases valued between $30 AUD - $2,000.¹

Pay in 4 and your credit rating

Your credit rating may be affected by using the Pay in 4 plan. It could be impacted in the following ways²:

• Credit rating may be affected if repayments are missed
• A credit check is carried out upon application of the Pay in 4 plan, which may affect your credit rating

What to keep in mind with Pay in 4

To summarise, the Pay in 4 plan from PayPal is a useful way of spreading the cost of transactions, without incurring hefty interest fees.

It is worth bearing in mind the following before getting involved with this service:

• Instalment plans are only available on transactions between $30 AUD - $2000 AUD¹
• Your credit rating may be affected upon a credit check and if repayments are late/missed²
• Service is only available to PayPal users over 18 who hold a valid proof of Australian address, email address and phone number, with an eligible payment method active within a PayPal account ²

Wise Account and Debit card

The Wise Account and Debit card are highly useful if you carry out regular international transfers and are looking to avoid unforeseen conversion fees.

With the Wise Account, you can hold money in over 40 currencies, and use the Wise Debit card to spend money at the mid-market rate in over 170 countries. Send, spend, and receive money like a local.

Join over 16 million customers currently enjoying Wise. It’ll only take a few minutes to register and see what’s inside.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

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Sources:

1. Pay in 4 - PayPal AU
2. PayPal Pay in 4 Contract - PayPal AU
3. PayPal User Agreement - PayPal AU

Sources checked on: 16 May 2023