Fintech introduces loans to 6, 12 and 24 installments also in our country: who can access, how the evaluation of the credit merit works and what the limits are compared to the “pay in 3 without interest”.
Paypal goes to the assault of the Italian buy now later market market. Just in time for the shopping season of the year -end parties, the new payment option in 6, 12 or 24 installments also arrives in Italy. An answer to that 51% of Italian users who, according to Fintech, renounces the purchase when checkout does not find the possibility of the balance in installments. But be careful, there are limits (not on all products will be possible) and interest is paid.
Rate loans in 6, 12 and 24 months on Paypal: who can access consumer credit
The expanded payment up to two years debuted in the United States and was experimented in Germany. It has worked and therefore now also arrives in Spain and Italy where only the “pay in 3 installments” was possible so far. The novelty allows customers, only natural persons (non -companies or entities) who are of age and have residence in Italy, to divide payments from a minimum of 60 euros up to a maximum of 5 thousand euros (2,999 euros in Spain), with the first installment charged one month after the purchase. Unlike the payment in three installments, which remains without interest, the new solutions provide A variable Taeg based on the customer’s amount and credit profile. No criminal, however, in case of delay in payments: only the interest on residual capital matures. A useful change for users and operators (who see the possibility of reducing the abandonment of the trolley) and useful for Paypal who looks at the Buy Now Pay Later market in full expansion. According to the data of the Polytechnic of Milan, in 2024 the transactions touched 6.8 billion euros.
How the new PayPal loans to 6, 12 and 24 months work
The system does not change compared to the popular “pay in 3”. During the checkout phase, the formulas at 6, 12 or 24 months are also found (by the end of the year). At this point, Paypal starts in real time an assessment of the credit merit: it is not a general approval valid for all future purchases, but a specific verification for the individual transaction. So for each new purchase you must go through the approval process. The outcome, however, is immediate: the approval comes in a few seconds. The first installment of the payment is paid for a month after the purchase. Subsequent reimbursements follow a monthly basis and can be managed automatically, with debit on paper or on the connected account, or carried out manually using the PayPal balance. However, there are some limitations. First of all, the PayPal Business accounts are not allowed: the service is reserved exclusively for individuals of age of age residing in Italy. Furthermore, Not all traders or goods that can be purchased online fall within the offer. Specific categories are excluded, but the list is not made public in detail. If there is no possibility of payments to installment up to two years, at the time of payment, it means that it is not possible for those products. Also attention to delivery times. Paypal clarifies that 6, 12 or 24 months loans are not suitable for items that are not shipped within 29 days of purchase. If the seller does not respect this temporal window, the installment decays and the customer will have to agree with the trader a different payment method. The same principle applies to multiple orders: if the products are sent to several phases, the refund plan starts from the moment the first article leaves the warehouse.
