PayPal announced Wednesday that it will no longer charge late fees for missed payments on "buy now, pay later" purchases, an aggressive move in an increasing competitive consumer financing market.
PayPal said the new policy, which takes effect in October, will cover new customer purchases in the U.S., the U.K. and France. The policy was already in place in the PayPal's "buy now, pay later" services in Germany and Australia.
PayPal began offering BNPL services in France, the U.K. and the U.S. last year. The financing product has been growing rapidly, highlighted by Affirm's successful IPO in January and Square's acquisition of Australian BNPL company, Afterpay, which was announced this month.