Online Shopping Sites and Bill Me Later

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BUY NOW, PAY LATER SHOPPING has made its way from the back-end of department stores to the front page of the internet’s online shopping mall.

Just when you thought “buy now, pay later” as an in-store plan had been rendered unnecessary by credit cards, the get-it-now plan has resurfaced in the world of online shopping sites with a fresh new feel.

Have you considered giving your on-site advertising a big boost by offering six months to pay and no interest charges?

Maybe not. Here’s more info on how you can do that — without risk.

PayPal’s Bill Me Later

PayPal Bill Me Later

via PayPal

PayPal lets merchants offer a PayPal-sanctioned “buy now, pay later” plan.  It is a trifecta shopping arrangement. PayPal handles the transaction, merchants get paid upfront, and the customer has up to six months to pay (on orders of $99 or more) without incurring interest on the purchase.

How it works

Bill Me Later is a flexible credit line built right into the shopper’s PayPal account.

To apply, PayPal account holders simply enter their birth date and the last four numbers of their social security number (on the PayPal website) – then accept the terms.  They are normally approved within seconds.

The starting credit line amount is equal to the amount of the first purchase or $250 – whichever is greater.

Merchants who want to be part of the system are granted permission to display one of PayPal’s Bill Me Later banners to let prospects know the option is available for purchases made on their site (not mandatory, but certainly wise).

Then, when the customer checks out via PayPal, the Bill Me Later option is presented. The buyer can still choose to employ a different method of payment, but Bill Me Later looks terribly convenient.

Why Bill Me Later is great for customers

For starters, Bill Me Later gives consumers more buying power.  Customers are more likely to make larger purchases when they know they will be able to make payments over time.

Moreover, no interest is charged on payments, as long as the customer takes care of the full amount within six months.  After that, the annual interest rate is 19.99%.  Take more time if you wish … but it will cost you.

Why Bill Me Later is great for merchants

According to PayPal, Bill Me Later can raise conversions by an average of 20%, and the feature is not only bringing in more orders – but is also raising the average order size.

Moreover, there is no credit risk to the seller — nor are there any extra fees charged to merchants who use the program.

With all the advantages of the Bill Me Later option, it’s easy to see why thousands of online shopping sites are partnering with PayPal to get the word out. If you’ve not yet begun alerting your customers to Bill Me Later as an alternative method of payment, the holiday season may be a good time to start.

Wouldn’t “Bill me Later” look good on your eCommerce website?

Be sure to check PayPal’s current terms and conditions to make sure your plans follow the guidelines.





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Marie Dean

Marie Dean has spent the last 10 years enthralled in user research studies and implementing the statistics found into creating better website user experiences. Starting in the field in 2003 with her own ecommerce website, she believes that leaving money on the table is never an option and guides businesses in lifting their conversion rates. She speciallizes in shopping cart optimization and reducing cart abandonment.

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