Pay Later upgrade for billing agreements (SDK)
Last updated: Aug 15th, 6:19am
This guide covers instructions to enhance your existing PayPal NVP/SOAP billing agreement integration to enable PayPal Pay Later offers during:
- A buyer’s first-time purchase experience (billing agreement setup).
- A buyer’s returning purchase experience (subsequent payments).
Note: This guide is for existing PayPal NVP/SOAP billing agreement merchants only. Make sure you're on version 62 or higher of the NVP/SOAP APIs to integrate Pay Later offers.
Warning: To continue providing a Pay Later option at checkout, it is essential that you integrate Billing With Purchase. This solution offers the same functionalities as Billing Agreement and is compatible with your existing payment options.
To enable Pay Later offers, make sure you:
- Implement the first time and returning purchase experience with our SDK.
- Enable the Pay Later button in addition to the PayPal button.
Once you implement the first-time and return purchase experiences, you can integrate with Pay Later messages to promote Pay Later offers, which can help grow your sales, attract new customers, and drive customer loyalty.
What is Pay Later?
PayPal offers short-term, interest-free payments and other special financing options that buyers can use to buy now and pay later, while merchants get paid up-front. Pay Later offers are included with PayPal Checkout at no additional cost to you.
What Pay Later offers are available depend on the country of the merchant. Refer to the Pay Later offers guide to learn more about what's available in the merchant's country.
| Workflow | Scenario | Agreement creation intent | Pay Later payment method support |
|---|---|---|---|
| Buyer is present during every transaction. Example, an e-commerce checkout. | At the time of transaction | BA with purchase | PayPal Credit, Pay in 4 / Pay in 3 |
| Buyer is not present during every transaction. Example, subscriptions. | At the time of transaction with no free trial | BA with purchase | PayPal Credit, Pay in 4 / Pay in 3 |
| Buyer is not present during every transaction. Example, subscriptions. | At the time of transaction with free trial | BA without purchase | PayPal Credit |
| Any | Account registration | BA without purchase | PayPal Credit |
How it works
Buyer first time journey
When the buyer decides to use PayPal for the first time on your website, they select the PayPal or the Pay Later button on your payment page. The buyer is then redirected to PayPal where they're presented with all eligible payment methods (including Pay Later offers) to make the first purchase and save the payment method for future purchases. If the buyer chooses Pay Later offers, PayPal saves their PayPal wallet instead for future purchases as Pay Later offers cannot be stored for one-click or buyer not present transactions.
Make sure you, as the merchant, uniquely identify the buyer and associate the billing agreement with their profile. The billing agreement is used to identify the buyer on PayPal’s side for returning purchases.
Buyer return journey
When the buyer returns to your website for subsequent purchases, the PayPal button changes to offer a one-click experience with the funding instrument rendered on the button. If the buyer wishes to use Pay Later offers or a different payment method, they can do so by selecting the "Change Payment Method" option via the PayPal button or by choosing the Pay Later button.
How do you want to integrate?
- Enhance your existing PayPal billing agreement integration for first-time buyers.
- Enhance your existing PayPal billing agreement integration for returning buyers.
See also
- Learn more about Pay Later offers.