Buy Now, Pay Later on eBay

A new eBay payment option means you can buy that case today and handle the details later.

eBay and Paypal have launched Bill Me Later, a new online payment option for buyers.

Starting this week, qualified eBay and PayPal customers in the U.S. can now pay for them over time, without using a credit card.

On eBay, Bill Me Later will be available as a payment option for both Buy It Now and approved auction purchases. Qualified customers can also use Bill Me Later at tens of thousands of online merchants that accept PayPal Express Checkout.

When customers select the PayPal checkout button, Bill Me Later will be available as a funding choice along with their stored PayPal balance, bank accounts or credit cards.

Sellers who qualify to offer the Bill Me Later option in their listings will still be paid by Paypal just as quickly as with any other transaction, but the buyer will have additional time before the funds are taken from their account.

Sellers included in the launch will be notified via an email from PayPal. Buyers in the initial launch will see Bill Me Later as a payment option in eBay checkout on items from those sellers.

"Bill Me Later is the perfect complement to PayPal and eBay," said Sam Shrauger, vice president of global product strategy for PayPal. "By offering Bill Me Later as part of the PayPal payment service, customers now have the choice to buy the items immediately and pay for them when they want with Bill Me Later`s flexible financing options."

"Bill Me Later provides a great e-commerce experience for eBay buyers and sellers, and we`re excited to give our customers an easy, safe new way to pay just in time for the busiest shopping season of the year," said Dinesh Lathi, vice president of buyer and seller experience of eBay Marketplaces.

For merchants, Bill Me Later helps increase sales and higher average order values by giving consumers promotional financing options and deferred payments, such as no payments for 90 days.

To use Bill Me Later directly, consumers simply select Bill Me Later as their payment choice, enter top-of-mind information including their date of birth and the last four digits of their social security number and accept the terms. Bill Me Later uses a real-time credit model to make decisions about credit within seconds, so consumers don`t have to complete a lengthy application prior to making a purchase. PayPal customers will be able to access their Bill Me Later statements directly from their PayPal accounts, with the option to pay their Bill Me Later balances with PayPal.