What Is PayPal Pay Later in WooCommerce?

This blog post guides you through what is PayPal Pay Later and the steps to set up Pay Later with PayPal on your WooCommerce store. Discover how to enable PayPal buy now pay later, giving your customers the flexibility to pay after receiving their order.

Buy Now Pay Later, also known as BNPL, is a great payment option to have on your WooCommerce store. It offers a win-win situation for WooCommerce shop owners and customers. Shop owners can increase their sales and conversion rate whereas customers can buy their favorite products without paying upfront.

Apart from a payment option, enabling shop now Pay Later PayPal can also be a great sales strategy. It helps in increasing sales and conversion by enabling easy checkout options for your customers. They can place an order without entering any credentials or payment details. Customers can also choose interest-free equated monthly installment (EMI) plans that enable them to pay a specific amount monthly.

Ready to accept payments via Pay Later PayPal in WooCommerce? Let’s get started!

PayPal Pay Later is a flexible payment option that allows customers to utilize PayPal buy now, pay later. Shoppers can choose to split their purchase into four interest-free payments (Pay in 4) or select a longer-term financing plan, depending on eligibility and the total purchase amount.

PayPal Pay Later helps increase WooCommerce conversion rates by giving buyers more financial flexibility.

The PayPal Pay Later offers two main payment options:

• Pay in 4: Customers make an initial down payment at the time of purchase, followed by three interest-free, bi-weekly payments to cover the remaining balance.
• Pay Monthly: Customers can apply for monthly installment payments.

Here is a quick overview of how Pay Later PayPal works:

• At checkout, the customer selects WooCommerce PayPal Pay Later as their payment option.
• They’re shown eligible plans.
• Once approved, PayPal handles the payments on their behalf.
• Merchants receive the full payment upfront from PayPal, just like any other PayPal transaction.
• Customers can manage their payments and view upcoming due dates directly in their PayPal account.

This service is available in the US, UK, France, and Australia and can be used for online purchases. To use PayPal Pay Later, applicants must be at least 18 years old, have a PayPal account in good standing, and reside in an eligible country.

That said, let’s examine the step-by-step process for enabling PayPal Pay Later on your WooCommerce store.

Before we begin, you should be aware that PayPal Pay Later is restricted to the following countries. Australia, France, Germany, Italy, Spain, United Kingdom, and United States. Make sure you meet the requirements of your country to be eligible for Pay Later.

Let’s see what the eligibility requirements are for the United States.

• Should be a US-based PayPal merchant
• Have a US-based website.
• All transactions should be in US dollars (USD).
• Have one-time payment integration.
• Abide by the PayPal Acceptable Use Policy.
• Shouldn’t edit Pay Later messages with additional content, wording, marketing, or other materials.

Now that you are aware of the eligibility requirements, let’s proceed:

Step 1: Install WebToffee PayPal Plugin

• Open your WordPress dashboard.
• Go to Plugins > Add New.
• Search for the PayPal Express Checkout Payment Gateway plugin.
• Install and Activate the plugin.

Step 2: Connect WooCommerce to PayPal

Go to Paypal.com and log in to your business account.
If you don’t have a business account, click Sign up to create one.
After logging in, select API Access under the Activity tab.

Scroll down to REST API integration and click Manage REST API apps and credentials option from PayPal API options.

• Click on PayPal Developer experience to connect your shop with PayPal.

• Choose from Sandbox mode or live mode. For this article, I will be using a Sandbox account.

• Click Create App to proceed.
• Enter an App Name.

• Select Merchant as App type to accept payment as a seller.
• Click Create App to complete the setup.
• You will be taken to the Sandbox API credentials page. There you can see your Sandbox account along with Client ID and Secret.
• The secret key is hidden click on Show to reveal.

• Copy the Client ID and Secret, we need to add these credentials to our WooCommerce payment options.

Step 3: Enable PayPal Payments in WooCommerce

• Go to WooCommerce > Settings on your WordPress dashboard.
• Select the Payments tab and enable PayPal Express.

• Click on Manage to configure the PayPal payment gateway on your WooCommerce store.
• Enable the PayPal Payment Gateway checkbox.
• Select Smart button as the Payment Button.

• Scroll down tothe Environment optionand select Sandbox mode for testing the payment and Live mode for accepting the payment.
• Enter the Client ID and Secret in the provided fields.

Scroll down to the bottom and click Save changes to apply the settings.

Step 4: Test PayPal Pay Later in WooCommerce

Go to any product page on your WooCommerce store and proceed to checkout.
You can see the Pay Later button on the checkout page.

In some countries, users can see a 4x PayPal button that allows them to pay the bill amount in four equated installments.

• On clicking Pay Later you will be directed to the PayPal login page.
• Log in with your credentials.
• Select the Pay Later option and choose your Pay Later method.

• You can choose from PayPal Credit or Pay in 4 installment options.
• Click Continue.
• The total amount will be divided into 4 payments.
• Click Continue to proceed.

• Link your card for enabling the auto-pay option for installments.
• Click Agree and Continue.
• Confirm your billing address and Click Agree and Apply.

Click Continue to confirm the order.
Your order will be placed and you will be directed to the confirmation page.

Now let’s see in detail what are the major benefits of having PayPal Pay Later on your WooCommerce store.

Improve Sales

Enabling Pay Later with PayPal on your WooCommerce store will increase sales and conversion rates. You can extend your services to more customers by letting them shop now and pay later in partial amounts or EMIs. This helps those customers who can’t afford to pay the full amount upfront, especially when you are selling expensive products.

Faster Checkout

WooCommerce PayPal Pay Later also helps enable a faster checkout process. Customers need not enter any credentials, which simplifies the checkout process and results in faster checkout. The faster the checkout process is, the lower the chance of cart abandonment. So, enabling Pay Later PayPal in WooCommerce can also help reduce cart abandonment.

Upsell

You can upsell products on your store by enabling PayPal Pay Later on WooCommerce. Let’s say you are selling Apple AirPods and AirPods Pro on your WooCommerce store for $99 and $199, respectively. When someone comes looking for the $99 regular AirPods, you can push them to purchase the more superior AirPods Pro for $199 with PayPal Pay Later options. This way, you can double the cart value.

Reduce Payment Fraud Risk

Integrating PayPal Pay Later in your WooCommerce store can reduce the payment fraud risk. Customers do not have to pay or enter payment information to place an order. This reduces the payment-related security risks on your eCommerce store. Also, PayPal is a secure payment gateway using the SSL protocol with 128-bit encryption.

Build Customer Loyalty

You can build customer loyalty by making them eligible for Pay Later options. This builds trust among your customers, and they keep buying products from your store. They will often use the Pay Later PayPal option to reduce the burden of paying a huge amount upfront.

Attracts New Customers

Enabling Pay Later not only keeps your existing customers satisfied but also attracts new customers to your store. WooCommerce Pay Later with PayPal gives you an edge over your competitors, as customers love credits and EMI options. This way, you can attract new customers to your store and keep them satisfied.

There are many other payment gateway options available for WooCommerce that support Pay Later. However, PayPal has global acceptance and accepts international payments seamlessly. The PayPal Payments plugin mentioned in this article also helps you to enable smart checkout options like location-based payment methods and other user-specific payment options. 

Hopefully, this article has helped you set up PayPal Pay Later options on your WooCommerce store. Do let us know your thoughts below.