PayPal Credit (Bill Me Later) coming to UK

PayPal Credit hmPayPal are dumping the Bill Me Later brand in favour of a new identity – PayPal Credit.

They announced that “As people and businesses know and trust the PayPal name, this is a natural and logical brand transformation. It also demonstrates how we are moving credit more towards the center of our business, aligning it more closely with our overall brand, and working as a partner with businesses to spur growth”.

At the same time they also announced that PayPal Credit will be rolled out to the UK and Germany in the near future. This means that the Bill Me Later feature allowing shoppers to purchase on the never never will become available to UK and German eBay buyers. There is no change required by eBay sellers, it’s the buyer that selects the option, you as a seller will get paid by PayPal just as if the funding source was a debit or credit card.

Bill Me Later expansion to the UK was first announced at ChannelAdvisor Catalyst 2012 so it’s been a long time coming!

At the same time PayPal announced that PayPal Working Capital business loans will become available in Australia as well (as previously announced) in the UK. Since the pilot program launched last September in the US, more than 20,000 businesses have collectively borrowed more than $150 million through PayPal Working Capital.

PayPal Credit and Working Capital is pretty neat for PayPal, they charge the merchant for a cash advance to buy the inventory and then they charge the consumer a fee to borrow the money to pay for them… and that’s on top of all of the normal PayPal fees. They could in effect be paid three times for the same transaction which is a very astute business model.

PayPal’s aim is to build a global portfolio of credit solutions and to be there whether you want to shop and pay now, shop and pay later or finance your business growth.