Looking for a way to boost sales? If you use PayPal to accept and process payments, a new credit option could be the solution your business is looking for.
Formerly called "Bill Me Later," PayPal's revamped PayPal Credit service lets merchants offer better and more affordable credit options for their customers. With PayPal Credit, merchants can now customize credit terms and offer more ways than ever for customers to pay, so they can find a method that best suits their financial needs.
Here's how PayPal Credit works and how it can benefit your business. [PayPal's Mobile Credit Card Reader: What You Need to Know]
How PayPal Credit works
PayPal Credit lets merchants extend flexible credit terms to customers who use PayPal to complete their transactions. While offering credit on the PayPal platform is nothing new, PayPal Credit gives merchants and customers more financing options that work for them.
The best thing about PayPal Credit is that, unlike its predecessor, Bill Me Later, it lets merchants fully customize credit terms for individual customers. Merchants can decide interest rates, monthly payment amounts and the number of months customers have to pay. Free interest options are also available.
To use PayPal Credit, customers apply for credit just like they do with Bill Me Later. Applications can be approved in minutes, depending on the customers' application information. And just like with regular PayPal payments, PayPal Credit pays merchants instantly while PayPal settles with customers.
Benefits of PayPal Credit?
The biggest benefit of using PayPal Credit is that it can help merchants grow their businesses. Because the service gives customers more options, PayPal says its credit program can "drive sales by increasing Average Order Value (AOV) and reducing shopping cart abandonment."
For instance, customers making large purchases can now choose to spread their payments equally throughout a certain number of months. But instead of using one-size-fits-all financing like Bill Me Later did, retailers can cater credit terms that benefit their customers. This lets retailers offer customized solutions to fit their customers' unique needs, while giving these customers more options and freedom so they don't shop elsewhere.
PayPal Credit is also all about transparency; when merchants extend credit, PayPal ensures that the credit terms are clear and understandable. This means customers will know exactly what they are signing up for.