PayPal has launched PayPal Pay in 4 in Canada, an interest-free, no-fee buy now, pay later (BNPL) solution, which will be available to Canadian shoppers starting this holiday season across various online brands.
This new payment option allows consumers to split eligible purchases ranging from $30 to $1,500 into four equal, interest-free payments over a six-week period. Payments can be funded using debit, credit, or a bank account, with options for early repayment via the PayPal app or online. Key merchants adopting PayPal Pay in 4 include Knix, Samsonite, Silk & Snow, The Home Depot Canada, and Ticketmaster.
According to PayPal’s 2025 Festive Spending Survey, conducted by Leger in October 2025, 60% of respondents who have not yet utilized BNPL services stated they would be encouraged to try them if no fees were involved. The Pay in 4 solution is designed without late fees, sign-up fees, or hidden costs. Additionally, eligible purchases made with PayPal Pay in 4 are covered by PayPal’s Purchase Protection.
Michelle Gill, General Manager, Small Business and Financial Services at PayPal, commented on the launch, stating that it addresses the demand for transparent payment options in Canada, where PayPal has operated for over 15 years. Gill also noted that businesses offering PayPal’s BNPL solutions have experienced increased conversion rates and higher sales, particularly during peak shopping seasons.
For businesses, BNPL solutions are becoming an expected feature. PayPal’s BNPL offerings report a 90% global approval rate and an 80% higher average order value, contributing to reduced cart abandonment and boosted conversions. The same survey indicated that 74% of Canadians set a budget for holiday shopping, and 72% plan their purchases in advance. While 51% plan to spend the same as last year, 14% anticipate spending more. BNPL is considered for purchases like appliances by 31% of Canadians, home décor/furniture by 30%, and electronics by 26%.
Pattie Lovett-Reid, a financial commentator, highlighted that Canadians are being strategic with their financial management. She noted that flexible, fee-free payment options can provide financial breathing room during the holidays.
In conjunction with the holiday season launch, PayPal is collaborating with Cadillac Fairview. This partnership aims to enhance the holiday shopping experience, incorporating PayPal Pay in 4 for online purchases. Cadillac Fairview malls in Toronto, Montreal, Calgary, and Vancouver will also feature ‘Pay in 4, Play in 4’ pop-up experiences and an online game, offering eligible shoppers chances to win prizes up to $1,000.
PayPal, established over 25 years ago, serves approximately 200 markets globally. A 2024 report by Statista on E-commerce in Canada identified PayPal as the top e-commerce payment brand among Canadian consumers.
