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
DISCOVER > DEFINE > DEVELOP > DELIVER
Team
PRODUCT MANAGERS
UX DESIGNERS
CONTENT DESIGNER
SOFTWARE ENGINEERS
LEGAL COMPLIANCE
RISK MANAGEMENT
CROSS-FUNCTIONAL
Overview
Pay Monthly, also referred to as “Long-Term Installments”, is another addition to the Global Pay Later – a suite of deferred payment offers globally. Pay Monthly 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 between 10-30%, calculated on a risk basis. Customers can view offer details in a simple interface and can apply in advance to see how much they qualify for, or they can see their offers in checkout and get an instant approval decision for their purchase.
As far as merchants are concerned, they will be able to present long term installment options early in the shopping journey just like with other “Buy Now, Pay Later” offers. In addition, merchants will be able to buy down the APR rate to 0%.
Goal
To provide customers with a flexible, no fee payment solution to improve their financial stability when making larger purchases. Our goal is to help customers understand where to start, what to do, and how to keep up with payments.
Design Scope
ACQUISITION EXPERIENCE
Happy Path + Edge Cases
Mobile (mweb)
Desktop (web)
SERVICING EXPERIENCE
Happy Path + Edge Cases
PayPal Mobile App
Desktop (web)
OPTIONAL AUTOPAY EXPERIENCE
Happy Path + Edge Cases
PayPal Native App
Desktop (web)
BRAND REFRESH 1.0 → 2.0 → 3.0
All Experiences
PayPal Mobile App, Desktop (web)
Mobile (mweb)
Design Principles
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).
Customer Segments
Based on GPL US usage data from Jan 2021.
Customers’ Needs
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.
SERV: Make a Payment Flow
Making a manual payment on the servicing side, in the PayPal’s native mobile app.
SERV: Disable Autopay Flow
Turning off autopay in PayPal’s native mobile app.
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
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.”
Success & Impact
Jun ’22 – Nov ’22
$262M
TPV
0,27M
FTU
6.4%
CTR
0,5M
TRX
95,27%
LOAN USAGE
51%
COMPLETION RATE