PayPal’s Buy Now Pay Later Feature Exploded Almost 400% on Black Friday

PayPal saw tremendous action with its “Buy Now Pay Later” feature this Black Friday.

According to the company’s CEO Dan Schulman, the option had soared nearly 400% that day.

Speaking to CNBC’s Jim Cramer in a “Mad Money” interview on Tuesday, Schulman said, “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 added that short-term installment payments had been “one of the stars, actually.”

The activity on Black Friday continues to be a trend PayPal observed throughout November, which is the first time the company recorded more than $1 billion 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 and said that its overall usage is “well over 10 million consumers.”

Late last year PayPal had launched an installment payment option called “Pay in 4” in the U.S., 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.

According to data from Salesforce, the use of the payment method “buy now, pay later” globally during Cyber Week (from Nov. 23 to Monday) had increased 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

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.