PayPal Holdings, Inc. ( PYPL ) shares are trading higher. The company on Monday launched 5% cash back on buy now, pay later (BNPL) purchases to ease holiday spending stress for U.S. shoppers.

What To Know: PayPal ( PYPL ) announced that U.S. customers will earn 5% cash back on PayPal BNPL purchases between now and the end of the year. The new promotion comes as 60% of shoppers report increased financial stress heading into the holiday season.

PayPal ( PYPL ) said the cash-back program aims to make it easier for consumers to manage spending while offering more flexibility when paying for gifts, travel and other holiday expenses.

Customers can save the 5% cash-back offer through the PayPal ( PYPL ) app, and it will automatically apply to eligible BNPL transactions made online or in-store until Dec. 31.

PayPal ( PYPL ) also introduced Pay Monthly for in-store purchases in the U.S., expanding its BNPL offering. Customers can apply for a loan in the app, receive a single-use virtual card and begin using it within 24 hours.

“Our customers seek payment options that make holiday shopping easier and more rewarding,” said Michelle Gill, general manager of small business and financial services at PayPal ( PYPL ).

“With cash back on Buy Now Pay Later products, we’re giving them a smarter way to pay and more flexibility to shop the way they want. And for merchants, PayPal BNPL is a proven way to attract more shoppers and increase conversion during the busiest season of the year.”

See Also: ChatGPT Parent OpenAI, AMD Partner In Landmark AI Deal

PYPL Price Action: PayPal ( PYPL ) shares were up 3.13% at $71.42 at the time of publication on Monday, according to data from Benzinga Pro.

Image: Shutterstock.com