eBay owned PayPal has launched a new payment service called PayPal Pay Later that allows merchants to offer promotional financing.
Buyers that use the promotional offer can defer payments for purchases on merchants Web sites that participate in the program. The PayPal Pay Later service lets online sellers offer a transactional credit account with financing options for buyers at check out. Buyers do not have to have a PayPal account.
PayPal says that financing options and deferred payments have increased sales and higher selling prices for merchants. A Northstar Research Partners study commissioned by PayPal, found that 56 percent of PayPal users are more likely to make a purchase from a retail site if deferred payment is available.
“PayPal Pay Later makes offering PayPal even more attractive to merchants because it gives them yet another way to drive sales,” said Stephanie Tilenius, vice president and general manager of PayPal Merchant Services.
“And consumers get instant purchasing power because they can buy when they want and pay for it later – all with the peace of mind that they don’t have to share credit card information over the Web.”
The PayPal Pay Later service is issued by GE Money Bank, a provider of consumer credit.
“Smart, money managing consumers will find deferred payments to be an extremely easy way to buy what they really need or want now and plan out their payments in a way that best fits with their budget,” said Margaret Keane, president and chief executive officer, GE Money – Retail Consumer Finance.
