Payment in installments with PayPal - how it works

Payment by installments with PayPal allows larger purchases when shopping online with monthly installments. At participating online shops, you can select "Installment payment powered by PayPal" as the payment method. We'll show you how it works.

PayPal installment payment: Only in participating shops

• For some time now, online shops have been able to offer PayPal payment in installments as a payment method.
• The customer's creditworthiness is checked in real time via the name, date of birth and bank details, and payment in installments is approved.
• Paying in installments does not create any risk for the retailer, but this is entirely up to PayPal: the group pays the entire amount to the retailer and then takes over the payment from the customer. PayPal lends you the money.
• Traders pay fees to PayPal for this. There are no additional fees for the customer, but the online shops pass their costs on to you via a certain interest rate for payment in installments.
• Installment payments over 6, 12, 18 up to 24 months are possible. As a rule, the shorter the term, the lower the interest accrued. However, the rates will then be higher. Here it is worthwhile to calculate a little which variant is the best for you.
• If you want to pay off the remaining amount in advance, you can do so. Special payments are also an option to shorten the term.
• You can link the payment of the individual installments to your PayPal account. So you always have an overview of how many installments are still due and what amount is open.

This is how PayPal payment by installments works

So far, only a few shops offer payment in installments. Most providers should follow suit over time. Payment in installments is very easy, you do not need a PayPal account:

1. Place an item in the shopping cart and select the payment method "Installment payment powered by PayPal" at the checkout.
2. You will be asked to provide your name, address, date of birth and bank details. PayPal will then check your solvency, for example through credit agencies such as Schufa.
3. After completing the purchase, the provider receives the entire amount from PayPal. PayPal in turn debits the amount from your account every month.
4. The minimum order value for payment in installments with PayPal is 99 euros. However, the purchase amount may not exceed 5, 000 euros in order to be able to use the PayPal installment payment.