PayPal Adds 5% Cash Back to Buy Now, Pay Later (BNPL) Purchases
PayPal Adds 5% Cash Back to Buy Now, Pay Later (BNPL) Purchases
PayPal is making holiday shopping more affordable with a new 5% cash-back offer on all Buy Now, Pay Later (BNPL) purchases made through its platform in the U.S., valid through year-end.
The offer applies automatically to eligible in-store and online purchases across categories like gifts, electronics, fashion, and travel.
PayPal is also expanding its Pay Monthly option to in-store transactions, giving customers the same flexibility they enjoy online - spreading payments over time without upfront costs.
Why This Matters
With rising costs, consumers are feeling more financial pressure heading into the holidays. PayPal’s BNPL program - now enhanced with cash back - helps shoppers manage expenses more easily while earning rewards.
More than 80% of BNPL users say they plan to use it for holiday shopping this year. For merchants, offering flexible payments and incentives can lead to:
✅ Higher conversion rates
✅ Lower cart abandonment
✅ Stronger customer loyalty
What This Means for the Industry
For Consumers:
Greater flexibility and affordability. The 5% cash back makes PayPal’s BNPL one of the most rewarding short-term financing options this season.
For Merchants:
A competitive advantage during peak shopping periods. By offering flexible payment terms and attractive cash-back incentives, they can improve checkout conversion rates, boost customer retention, and reduce cart abandonment.
