|EcommerceBytes-NewsFlash, Number 2915 - October 17, 2012 - ISSN 1539-5065 3 of 5|
PayPal wants small and medium sized online merchants to promote its Bill Me Later consumer-financing service on their websites, promising increased sales from cash-strapped consumers "just in time for the holiday season."
Merchants can automatically offer shoppers the ability to finance purchases of $99 or more through PayPal's Bill Me Later service. Customers are subject to consumer credit approval.
"You, the business, will get paid right away," PayPal explained on its blog. "You don't pay any additional costs. And you don't assume any credit risk. Plus, we've made it incredibly easy to market this throughout your site, in a way where you don't have to worry about regulatory or legal restrictions."
A PayPal spokesperson said the company has been testing the service with some of its top merchants. "Along with a special no-interest financing offer, PayPal is also working directly with small business owners to help them promote new credit options directly on their site through new banners PayPal has designed and is hosting directly," he said.
eBay's payments unit said it created a special portal to help merchants who don't have the resources to sort through the regulatory and legal restrictions required to market credit. It created banner ads that can be placed directly on merchants' websites.
PayPal said Forrester Research found that 43% of Bill Me Later sales were incremental to online businesses, and that offering Bill Me Later could increase average order sizes up to 75%.
Writing on the PayPal blog, Peter Karpas, Vice President and General Manager, North America Small & Medium Business, wrote, "Helping small businesses succeed is one of the platforms that PayPal was built upon, and something I know our whole team is incredibly passionate about. This is why this effort is so exciting - we can't wait to see this offer drive success for you this holiday season and beyond."
More information is available on the PayPal portal for Bill Me Later.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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