Pay in 4 Rolls Out with No Fees—Shoppers Gain Holiday Breathing Room
Just in time for the holiday shopping rush, PayPal has launched its no-fee Pay in 4 Buy Now Pay Later (BNPL) service in Canada, letting shoppers split purchases from $30 to $1,500 CAD into four equal, interest-free payments over six weeks. Available at a wide range of major online retailers—including Knix, Samsonite, Silk & Snow, The Home Depot Canada, and Ticketmaster—Pay in 4 brings predictable installment payments, no hidden fees, and the promise of less holiday shopping stress.
With 60% of surveyed Canadians saying they’d consider BNPL if it were fee-free, PayPal's move seems primed to meet strong consumer demand for budget-friendly flexibility. Purchases using Pay in 4 are also protected by PayPal’s Purchase Protection, giving additional peace of mind.
Survey Shows 74% of Canadians Budget for Holidays—BNPL Seen as Smart Cashflow Management
According to PayPal's 2025 Festive Spending Survey, Canadian shoppers are increasingly deliberate with their spending: 74% set a budget for holiday shopping, while 72% plan purchases in advance. While 51% of respondents plan to spend the same as last year, 14% say they’ll spend more, indicating some appetite for increased spending if the payment options make it manageable.
The table below summarizes key insights from the survey, reflecting how Pay in 4 could resonate with holiday shoppers:
| Survey Insight | Percentage (%) |
|---|---|
| Shoppers set a budget for holiday shopping | 74.00 |
| Shoppers plan purchases in advance | 72.00 |
| Planning to spend the same as last year | 51.00 |
| Would use BNPL for appliances | 31.00 |
| Would use BNPL for home décor/furniture | 30.00 |
| Would use BNPL for electronics | 26.00 |
| Would try BNPL if no fees | 60.00 |
For Merchants, Early BNPL Offering Drives Higher Conversion and Larger Baskets
The data supports that BNPL is more than just a consumer perk—it's a growth lever for businesses. PayPal reports that businesses featuring BNPL at checkout see a 90% global approval rate and 80% higher average order value, with notable reductions in cart abandonment. As shoppers gravitate towards transparent, flexible payment solutions—especially during peak retail periods—merchants stand to gain both conversion and loyalty by adopting PayPal's Pay in 4 early in the customer journey.
Beyond digital convenience, PayPal’s collaboration with Cadillac Fairview this holiday season highlights a push toward engaging shopping experiences. Promotions like the ‘Pay in 4, Play in 4’ pop-up and online games further incentivize usage, with prizes of up to $1,000 up for grabs.
Takeaway: Pay in 4 Could Change How Canadians Shop This Holiday Season
As rising costs and inflation pressures shoppers, interest-free, no-fee installment plans like PayPal’s Pay in 4 offer Canadians a flexible way to enjoy the holidays without sacrificing control of their finances. With over 80% brand recognition among Canadian online shoppers, PayPal is well-positioned to drive both consumer adoption and merchant sales during the critical end-of-year shopping surge.
For shoppers and merchants alike, the question now is how quickly and widely Pay in 4 will be embraced. If early survey data is any indicator, fee-free BNPL could become a must-have feature at Canadian online checkouts for this and many seasons to come.
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