PayPal scraps late fees for buy now, pay later purchases


FILE PHOTO: The PayPal logo is seen at a high-tech park in Beersheba, southern Israel August 28, 2017. Picture taken August 28, 2017. REUTERS/Amir Cohen

LONDON (Reuters) - PayPal Holdings Inc will no longer charge customers late fees when they miss payments on buy now, pay later (BNPL) purchases globally, as competition heats up in the fast-growing sector.

The changes will be effective from October in the United States, the United Kingdom and France, the San Jose, California-based company said on Wednesday. PayPal's BNPL services in Germany and Australia are already free of late fees.

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