The new PayPal Credit, f/k/a Bill Me Later, is beefing up its credit service to give retailers the ability to decide on the number of months and interest rates best suited for their customers. Additionally, retailers will also be able to choose among interest-free credit options for the first time, for their online customers.
With the newly upgraded PayPal Credit feature, customers will be able to divide larger purchases into smaller ones – allowing online shoppers to pay via PayPal when they may have otherwise turned to their credit cards.
The PayPal Credit offering that had been previously offered was if a customer spent $99, they would have had no interest and no payments for six months. PayPal says it will still make that available to retailers, but this change allows for them to offer more flexible credit to their customers.
The company said in July that it sees consumer spending going up 30% after a customer adopts a PayPal credit vehicle, citing studies that have tracked usage of the older Bill Me Later service as well as the GE-issued PayPal credit card.
PayPal also said it was buying back the GE portfolio in 2016 as part of its strategy to increase and expand its credit offerings – something the company notes is key as it expands into the offline world, and omni-channel. The company later plans to expand PayPal Credit more directly to retail and point-of-sale.
PayPal is also rolling out a new set of Business Consulting services that will allow businesses to learn more about best practices like reducing cart abandonment, improving conversion, or making international sales, for example. The program has been piloted for seven months.
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