eBay and Paypal are preparing to test launch Bill Me Later, a payment option that allows buyers to get their items now and pay later–without a credit card.
eBay and its Paypal online payment service will soon be rolling out a new option for buyers and sellers.
Bill Me Later, a service purchased last fall for $820 million, will offer yet another payment option for those who buy and sell sports cards and memorabilia–and just about anything else–on eBay.
Qualified buyers with a Paypal account in good standing and some of eBay’s most reliable sellers will be among the first to test drive the new service. 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.
eBay expects to offer buyers special introductory incentives for Bill Me Later such as $25 off and no payments for 90 days. The offers will be funded by Bill Me Later and credited directly to the buyer’s Bill Me Later account.
Deferred billing, a hit for many large retail stores, is typically offered through a credit card, but the eBay/Paypal version does not require the buyer to use one.
A specific launch date has not been set, but eBay indicated Wednesday that it would be rolled out "in the coming weeks". Once the trial phase ends, it’s likely the program will be expanded to a larger base of eBay/Paypal users.