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Merchants Can Now Offer Customized Financing via PayPal

PayPal launched a new dimension to its Credit offering, giving merchants the ability to offer shoppers customized financing. For sellers without the resources of a large retailer, it’s a way they can entice shoppers to make purchases now and pay later while not having to front the money themselves.

The eBay unit explained that for the first time, retailers can customize PayPal Credit to offer a monthly payment option and decide on the number of months and interest rate that works best for their customers.

Merchants can also offer interest-free options to customers shopping online who are approved in minutes.

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On the PayPal website, it shows a demo website that features an ad telling shoppers they could make a purchase with “No Payments plus No Interest if paid in full in 6 months on purchases of $99+”; merchants can also display the offer on the product listing page and on the checkout page.

Businesses know their customers best, PayPal said, “so it makes sense that they should have the freedom to choose which credit options they want to offer. Merchants are paid immediately and PayPal settles with the consumer.”

eBay acquired Bill Me Later in 2008 for close to a billion dollars and rebranded it to PayPal Credit last year.

PayPal also launched a new service for merchants on Monday called Business Consulting. “By helping merchants leverage best practices (e.g., reducing cart abandonment, improving conversion, making sales internationally) and offering custom engineered products – we eliminate friction and jumpstart sales.”

PayPal explained the consulting team had been available to select PayPal merchants for several years, “directly resulting in millions of dollars of incremental revenue.”

“For example,” it continued, “last year the Optimization team – just one slice of the larger team – created millions of dollars for hundreds of SMBs and large businesses.”

More information about the two new services is available on the PayPal blog.

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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