PayPal and Microsoft are deepening their partnership, with Microsoft integrating PayPal’s buy now, pay later (BNPL) solution in the US, the UK, Australia, Germany, France, Spain, and Italy.

In addition, Microsoft’s US customers will have the option to pay with Venmo in the Microsoft Store, which is currently available for Xbox users in the US.

The new integrations will provide Microsoft customers with more flexible ways to pay and help increase customer loyalty, said PayPal.

PayPal strategic accounts SVP Kurt Campisano said: “For over 16 years, PayPal checkout has been a trusted method for Microsoft Store customers to purchase products like Surface devices and Xbox consoles and accessories, as well as Microsoft 365’s product suite.

“We are thrilled to expand our partnership with Microsoft to offer them access to our full suite of capabilities that will create a beautiful customer experience across the entire shopping journey.”

PayPal said that its BNPL solution Pay Later and digital wallet Venmo will provide several benefits to Microsoft’s customers and its business.

The PayPal Pay Later solution will provide eligible consumers with flexibility in how to pay for their purchases, allowing them to pay fixed amounts over several weeks or months.

Venmo, through its social app, will enable a rapid and simple checkout process in the Microsoft Store and Microsoft Store on Xbox, to help improve the customer experience.

The consumers using Venmo will have the option to purchase subscriptions or split payments upon purchase, said the payments technology company.

Microsoft global payments vice president Ajith Thekadath said: “At Microsoft, our commitment to creating the best experience for customers is at the centre of everything we do, whether it’s for entertainment or productivity.

“The addition of new PayPal payment method options delivers on this commitment and offers even more flexibility for customers with tools that work for them and their goals.”