The Black Friday sales were up by five times compared to the same in 2020 in the Buy Now, Pay Later (BNPL) segment of PayPal. It is evident the payments giant is gaining from the credit market.
PayPal launched a new platform in August 2021 called Buy In 4 and simultaneously made an entry into the competitive credit niche. CEO Dan Schulman said a 400 percent year-on-year rise was witnessed in value last Black Friday and the segment is currently booming.
Black Friday is a shopping holiday in November, following the US Thanksgiving holiday. PayPal states over one million users benefited in the month and the BNPL service is gaining popularity further.
BNPL gained immense popularity due to the COVID-19 pandemic but regulators have revealed their concerns as the service may lead to greater indebtedness among customers, and especially the younger ones.
A survey conducted last September in the US finds customers are falling behind at least one payment. Schulman said the company is offering the service responsibly as they know the customers, the responsible customers who can borrow and the merchants as well. The default rate is one of the lowest and the approval rate is one of the highest.
Meanwhile, it is lately reported PayPal could acquire Pinterest Inc social media for $45 billion. It could be considered among the largest tech deal in the industry. The payments giant has declined to comment when asked by the press.
Schulman added that the company is open to deals either small or big with a cash-like equivalent of $20 billion. PayPal will look for acquisitions either small or large as it has a strict capital allocation.
PayPal embraced cryptocurrencies in 2021 to facilitate users to buy, sell as well as hold the digital currencies in the crypto wallet.