While Microsoft has not officially confirmed the feature, the discovery indicates gamers may finally be able to pay for Xbox hardware, games, and subscriptions using PayPal Pay Later or Klarna (KLAR), a global fintech firm. The update could further strengthen PayPal’s position in the growing BNPL market as the firm continues to expand beyond traditional digital payments.
Leaked Code Points to PayPal and Klarna Financing
According to leaked code from the official Xbox website, Microsoft could be preparing to offer flexible payment plans through both PayPal and Klarna. If the feature launches, customers using PayPal could choose between four interest-free bi-weekly installments and longer-term payments spread over up to 24 months.
On the other hand, Klarna users would be able to divide purchases into three equal payments. The first share will be due immediately, and the remaining installments will be billed every 30 days.
The leaked code also suggests the payment options may not be limited to Xbox consoles. They could eventually extend to digital game purchases, downloadable content (DLC), and Xbox Game Pass subscriptions. However, Microsoft has not confirmed which products would be eligible or if the partnership is certain.
