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Paypal Pay Later

Posted by Michael Bloch in ecommerce (Saturday August 4, 2007 )

PayPal has announced the launch of PayPal Pay Later, a service that allows merchants to offer customers promotional financing; i.e. a “buy now, pay later” arrangement.

The PayPal Pay Later service provides online merchants the ability to offer credit terms on a purchase, such as 90 days deferred payment.

If the shopper chooses a Pay Later option, they enter their date of birth and last 4 digits of their social security number during checkout. Paypal’s credit provider partner, GE Money Bank, then automatically evaluates the credit worthiness of the applicant within a couple of seconds and returns a yay/nay result to the shopper.

“Easy”, instant credit has always been a powerful conversion tool in bricks and mortar retail, so this is sure to also generate increased sales for online merchants selling goods with a substantial ticket price. According to a survey commissioned by PayPal, 56 percent of PayPal users stated they would be more likely to purchase from a retail site if a deferred payment option was available.

Pay Later can be used for purchases of $50 to $1,500. Participating merchants won’t pay any extra to utilize the service (for the time being). Currently, the new payment option is only available to consumers and select merchants in the U.S. Consumers won’t need to have an existing PayPal account in order to According to PayPal, increased coverage and additional features such as fixed monthly payment plans will be rolled out in the coming months.

If you’re interested in signing up for the Pay Later service as a merchant, here’s the place to do so

Related:

Guide to payment gateways and merchant accounts



 

 
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