PayPal is enabling monthly installment for larger purchases and offering business consulting, a move that will allow the company to handle larger transactions and extend its merchant services.

The PayPal Credit feature allows consumers to divide larger purchases into monthly payments. PayPal covers the larger payment immediately and then settles with the customer.  The product, which follows a model that's more common in Europe than in the U.S., is designed to increase average order value by enabling more expensive purchases.

Retailers can leverage new credit models to decide on the number of months and interest rate. There are also interest-free options, PayPal said.

"This gives consumers more control and helps them to better manage their budget," said Steve Alloca, vice president and general manager of merchant and retail solutions for PayPal North America, on PayPal's website.

PayPal will also offer business consulting, offering insight on sales, reducing card abandonment, improving conversion and bolstering international sales.

PayPal has made other recent moves to cement its relationships with merchants, including expanded cash management and next-day settlement.

"We learned through the launch of PayPal Working Capital that people appreciate knowing the full amount they are being charged in advance," Alloca said. 

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