PayPal CEO: Use of 'buy now, pay later' option soared nearly 400% on Black Friday

PayPal CEO Dan Schulman appeared on Tuesday's episode of "Mad Money." Sign up and learn more about the CNBC Investing Club with Jim Cramer https://www.cnbc.com/investingclub?__source=youtube|investingclub

PayPal CEO Dan Schulman told CNBC’s Jim Cramer on Tuesday that use of the company’s buy now, pay later option surged on Black Friday.

In an interview on “Mad Money,” Schulman said PayPal’s installment payment service is “one of the stars, actually, of the holiday season for us.”

“During Black Friday, our volume on buy now, pay later was up almost 400% year over year. We did some 750,000 transactions alone in one day on Black Friday,” Schulman said, referring to the day after Thanksgiving that’s a key part of the holiday shopping season.

The activity on Black Friday continues a trend PayPal observed throughout November, which is the first time the company recorded more than $1 billion of process volume through its buy now, pay later option in a single month, Schulman said.

“We did over 1 million first-time users for the first time ever in a month,” he added, putting its overall usage “well over 10 million consumers.”

Buy now, pay later has become increasingly popular among consumers during the coronavirus pandemic, and financial technology companies are racing to grab a piece of the red-hot market. Leading players in the space include Affirm, which in August scored a blockbuster partnership with Amazon, and the Swedish start-up Klarna.

PayPal launched an installment payment option called “Pay in 4” in the U.S. in late 2020, allowing people to pay for certain purchases over four interest-free payments. In September, PayPal also announced plans to acquire Japanese firm Paidy in a $2.7 billion deal.

PayPal is not alone in seeing a jump in buy now, pay later activity this holiday season. According to data from Salesforce, the use of the payment method globally during Cyber Week — from Nov. 23 to Monday — jumped 29% year over year. On Black Friday, in particular, Salesforce said 7% of global orders and 4% of those in the U.S. used a short-term, installment payment option.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic 

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast 
 
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/ 

#CNBC
#CNBCTV

Видео PayPal CEO: Use of 'buy now, pay later' option soared nearly 400% on Black Friday канала CNBC Television