Paypal has released a new product in the US, called Pay Me Later.
According to the press release on May 15 2008,
Starting today, eBay buyers in the United States can take advantage of Pay Later’s financing offer of no payments for 90 days for qualifying purchases between $50 and $199.
With Pay Later, buyers now have more ways to pay for items at checkout and can use Pay Later even if they don’t have a PayPal account. The streamlined application can be completed in 30 seconds and provides a buyer with instant access to credit.
Sellers also benefit through increased sales and higher selling prices. According to a study conducted by Northstar Research Partners commissioned by PayPal, 56 percent of PayPal users are more likely to purchase from a merchant if a PayPal deferred payment option is available.1 Pay Later purchases are the same as regular PayPal purchases: the sellers are paid quickly, and standard PayPal fees apply. Sellers who accept PayPal on eBay will automatically offer the Pay Later payment option.
I well and truly put my hand up to accept any new product opportunities like this, especially with all the market changes going on.
For higher priced item seller and product like this could be great in Australia. Australian TV is awash with ‘No money down, pay nothing for 4 years, interest free’ commercials for whitegoods, computers and furniture. It is a popular marketing model here and a product like this for Paypal users can only help to boost ASPs and conversion rates on eBay (and on our own websites!).
I hope it arrives in Oz soon…