PayPal Improves Credit Offerings for Small Retailers

With the holiday season approaching, many consumers will be searching online stores for great deals, but small merchants can’t always offer the same deals and payment options that large retailers can. But that’s why PayPal has been working to create an easy solution for these small businesses.

PayPal unveiled some new payment options this week that will allow online merchants to offer enhanced buy now, pay later options for purchases of $99 or more.

Through PayPal’s existing Bill Me Later service, businesses can now automatically accept payments on credit from customers, including no interest for six months. Businesses don’t pay any additional costs for this feature, and they still receive payment right away.

Consumers who choose this option will be subject to credit approval through PayPal. But they can use the option with no interest if the purchase is paid off within six months.

This offering will allow businesses to give their customers even more payment options, making it easier, and thus more likely, for them to make purchases. This type of financing has been an option for larger retailers for years, so this new offering may help to level the playing field for smaller retailers that don’t have the resources to sort through the legal and regulatory restrictions necessary to market credit to customers on their own.

And the change comes just in time for holiday shopping season, so PayPal has also offered businesses banner ads to promote the credit feature directly on their sites, so that customers know they have that option when shopping.

Previously, Bill Me Later didn’t offer the same type of credit without interest options to customers across all retailers. And there was not one simple, centralized way of advertising the option to consumers.

Of course, many online retailers can accept credit card payments as well, but this addition to Bill Me Later is just one more option businesses can offer consumers, which can only lead to more customers and sales for online retailers.


Annie Pilon Annie Pilon is a Senior Staff Writer for Small Business Trends, covering entrepreneur profiles, interviews, feature stories, community news and in-depth, expert-based guides. When she’s not writing she can be found exploring all that her home state of Michigan has to offer.

8 Reactions
  1. We were invited by paypal to be one of the participants to offer this. To early to tell yet, but hoping it will increase total sales and cart totals.

  2. That’s cool that they can make this available to smaller vendors…and just in time for the holiday season!

  3. And the ugly reality of the clunky PayPal, et al …

  4. It’s a great idea for everyone. I can see the plus sides from the point of view of the consumer and the business. We’ll certainly be looking forward to trying this out.

  5. I’m just glad that Paypal have decided to change their site design. It actually feels more like a tool than a standard site now.

Win $100 for Vendor Selection Insights

Tell us!
No, Thank You