PayPal is coming at Afterpay and others with QR payments and BNPL innovations


PayPal is chasing other remote payments like ApplePay and Afterpay with a ‘COVID era’ QR code application. Previously, PayPal could only be utilised via a seller’s online shopping site, typically via tablets or home computers when shopping remotely. The QR code application will enable retail outlets to offer PayPal at point of sale using mobile devices.

John Lobb, Portfolio Manager for Insync Funds Management, said: “There are a number of benefits to both consumers and retailers of the QR code tech. It offers an additional layer of security for both parties, speeds transactions, and is generally cheaper to implement for sellers than other payment modes.

“QR codes avoid transfer of any personal data to the retailer, unlike use of credit cards,” said Mr Lobb.

PayPal also launching its buy-now-pay-later offering in Australia

PayPal has the expertise, fintech and global reach to merchants to produce a better BNPL than its smaller competitors. “PayPal will also offer a much higher borrowing limit than its peers, which positions them more competitively,” said Mr Lobb.

They are launching their ‘Pay in 4’ BNPL product to retailers in Australia across its existing nine million active accounts during June 2021.

“I think PayPal has a potentially better BNPL than its competitors given their customer base, their knowledge of clients’ spending behaviour and their credit worthiness. They won’t charge retailers any extra fees. PayPal will charge 2.9% p.a. instead of Afterpay’s 3-5%. It can be used anywhere in the world where PayPal is accepted.

“Customers can borrow up to $1,500 depending on their credit rating, which they will already know for existing users. Afterpay and other new entrants have much more modest lending limits,” said Mr Lobb.

Insync’s investment philosophy revolves around high quality profitable companies that are positioned in one of 16 global megatrends. PayPal sits squarely in the contactless economy megatrend, and Insync believes it will continue to generate extraordinary growth as a result in coming years.

Insync has held PayPal for some time and sees this response to the Afterpay/Zip Pay models etc as aggressive enough to keep its online payments crown for the foreseeable future.

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