Pay Monthly

Buy bigger, breathe easier. A loan product that provides the ease of monthly payment plans, $0 down, and no sign-up or late fees.

Lead UX Designer

Role

Figma, Miro

Tools

12 Months

Timeline

Design Thinking

Methodology

Design Thinking 

I utilize Double Diamond as a practical framework for applying Design Thinking.

Team

Product Managers

UX Designers

Content Designer

Software Engeneers

Legal Compliance

Risk Management

Cross-Functional Teams

Overview

Pay Monthly is another addition to Global Pay Later – a suite of deferred payment offers. It is a closed-ended, interest-bearing loan product that gives buyers the opportunity to finance larger purchases by spreading their payments between 6-24 months with an APR calculated on a risk basis. Customers can easily view offers, apply in advance to check eligibility, or receive instant approval at checkout for a seamless experience.

For merchants, Pay Monthly introduces long-term installment options early in the shopping journey, similar to other Buy Now, Pay Later solutions. Merchants can also buy down the APR to 0%, making high-value purchases more accessible and driving conversions. By combining flexibility and convenience, Pay Monthly enhances the shopping experience for both customers and merchants.


Goals

Provide PayPal customers with a flexible, no-fee payment solution.

Improve their financial stability when making large purchases.

Help them understand where to start & how to keep up with payments.

Design Scope

Design Principles

Transparency

Customers should know the exact loan & monthly payments amount, and how the loan works.

Choice

Our product should provide flexibility in available terms, as well as a wide purchase range.

Convenience

Customers should receive on-the-spot decision alongside with other options, if declined.

Recognition

Build the brand recognition of Pay Later suite, where Pay Monthly is a long-term option for bigger purchases.

Research

Prior to the design kick off, the discovery phase took place to collect all the relevant data in order to obtain insights on customers’ needs, struggles, main motivations and goals, so that we can use them as opportunities for design. The research methodologies utilized as part of the design process included existing PayPal customer surveys, direct competitors’ analysis, as well as research studies done on the existing PayPal’s Buy Now Pay Later products – Pay in 4 (US) & PayPal Ratenzahlung (Germany).

Surveys

Existing PayPal customers were recruited to get insights on the target audience in the US.

Focus Groups

Three focus groups, each lasting 2 hours. Locations: Baltimore, Dallas, Los Angeles, Irvine.

Competitors

Affirm, Klarna, Afterpay, Sezzle, Splitit, Perpay, ZIP Pay, Apple Card  Installments.

PayPal’s BNPL

Pay in 4 (interest-free product in US), Ratenzahlung (Installments product in Germany).

Customer Segments

Based on GPL US usage data from Jan 2021.

Customers’ Needs

Competitor Analysis 🔍

Click on cards to see flows & insights.

Ideation

Design kick-off session to define the problem, discuss questions & brainstorm ideas.

Brainstorming

UED + Product + ENG

Mapping Autopay Flow

Pay Monthly is the first BNPL product with autopay functionality being 100% optional. As a result, customers can opt out from setting it up in the application process and enable it in the servicing native PayPal app later on, or just continue with the manual payments. It was our task to map out all the possible autopay scenarios and think of any possible consequences – interrupted payment schedule, missed payments, business cut-off hours, changing funding instrument, etc., and how we, as a team, can solve for all of those.

Designing + Prototyping

Bringing concepts into reality.

ACQ: Application Flow

Pay Monthly application process thought the merchant’s website with the upstream presentment.

TEST PROTOTYPE

SERV: Make a Payment Flow

Making  a manual payment on the servicing side, in the PayPal’s native mobile app.

TEST PROTOTYPE

SERV: Disable Autopay Flow

Turning off autopay in PayPal’s native mobile app.

TEST PROTOTYPE

Usability Testing

One round of moderated usability testing was conducted with 10 consumers who were testing remotely through User Testing platform. Remote moderated testing took place over 60-minute sessions. Participants, both existing and new PayPal users, were asked to make a purchase on the merchant’s website by using Pay Monthly. In the second part of the session, they were asked to make the first payment and set up autopay in the PayPal’s app for the remaining loan amount.

GOALS

E2E

Test how customers interact with Pay Monthly experience & identify what their reactions and  perceptions are. 

Pay Later

See if customers understand the concept of Pay Later as a suite of Buy Now Pay Later products/offers available to them.

Multi-Product

Identify any issues with multi-product construct. Do users understand differences between Pay in 4, Pay Monthly, PP Credit?

Personal Info

How comfortable/ uncomfortable are customers with providing the required personal information in one-page application format?

Autopay

Identify if customers are aware of the ability to set up autopay. Would they set it up now or skip for later – understand their motivations.

Gaps

Understand if  customers have all the information they need before proceeding to complete the purchase. Identify any possible gaps.

Test Results

Overall, no major usability issues were detected during the testing sessions. All participants were able to complete the task of completing a purchase using Pay Monthly. However, there have been a bit of confusion around some of the language involving the hard/soft credit check, Pay Later and some of the disclosures. These were addressed, and the product was ready for its upcoming release.

The decision was made to launch release 0 and ramp it from 1% to 5%, 20% and up to 100% within the following month so we have an opportunity to observe the performance and key metrics to learn from them and address any possible issues in future releases as part of optimization efforts.

“This installment offer comes from PayPal? My trust level just went up.”

Stacey B.

Success & Impact

Jun ’22 – Nov ’22

$262M

TPV

0,27M

FTU

6.4%

CTR

0,5M

TRX

95,27%

LOAN USAGE

51%

COMPLETION RATE