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{{short description|Payment method}}
{{advert|date=November 2017}}
{{advert|date=November 2017}}
{{Infobox website
{{Infobox dot-com company <!-- infobox source: http://www.hoovers.com/ebay/--ID 56307--/free-co-factsheet.xhtml -->
| name = PayPal Credit
| name = PayPal Credit
| logo =Alexander
| logo =
⚫
| company_type = [[Subsidiary]]

| foundation = {{start date and age |2000}} in [[Timonium, Maryland]], United States
⚫
| company_type = Subsidiary
| location = San Jose, California
| genre =male
⚫
| locations =
| foundation = [[Timonium, MD]] US (2000)
| area_served = United States
| founder =Alexander
| industry = [[Financial services]]
| location_city =Addis Ababa
⚫
| products =
| location_country =Ethiopia
| services =
| location = [[Timonium, Maryland]] US
⚫
| owner = [[PayPal]]
⚫
| locations =
| area_served =
| num_employees =
⚫
| parent = PayPal
| key_people =
⚫
| url = {{URL|https://www.paypal.com/credit}}
| industry =
⚫
| caption = Bill Me Later homepage
⚫
| products =
| services =
| website_type =
⚫
| advertising = none
| revenue =
⚫
| launch_date = <!-- the date on which the website was launched-->
| operating_income =
⚫
| current_status = active
| net_income =
⚫
| owner = [[PayPal]]
| num_employees =
⚫
| parent = [[PayPal]]
| divisions =
| subsid =
| company_slogan =
⚫
| url = {{URL|https://www.paypal.com/credit}}
| alexa = {{IncreaseNegative}} 5,766 ({{as of|2014|4|1|alt=April 2014}})<ref name="alexa">{{cite web|url= http://www.alexa.com/siteinfo/billmelater.com |title= Billmelater.com Site Info | publisher= [[Alexa Internet]] |accessdate= 2014-04-01 }}</ref><!--Updated monthly by OKBot.-->
⚫
| caption = Bill Me Later homepage
| website_type =
⚫
| advertising = none
| registration =
⚫
| launch_date = <!-- the date on which the website was launched-->
⚫
| current_status = active
| footnotes =
| intl =
}}
}}


'''PayPal Credit''', formerly named '''Bill Me Later''', is a proprietary payment method offered on the websites of many well-known merchants, including those of [[Wal-Mart]], [[Home Depot]], [[USPS]], [[B&H Photo Video]], [[Best Buy]], [[Overstock.com]], [[JetBlue Airways]], [[Liquidation Channel]], [[Jewelry Television]] and [[Hotels.com]].<ref>{{cite book|url=https://books.google.com/books?id=x6Z1L8kV7NcC&pg=PA428&dq=%22bill+me+later%22&ie=ISO-8859-1&output=html |title=Internet Law: A Field Guide - Jonathan D. Hart - Google Boeken |publisher=Books.google.com |date= |accessdate=2013-09-06}}</ref> The site, which offers consumers a line of [[revolving credit]] through [[Synchrony Bank]], allows purchases to be made online without using a [[credit card]]. The company was one of the first recipients of the Red Herring Global 100 Award by the publication [[Red Herring (magazine)|Red Herring]].<ref>{{cite web|url=http://www.accessmylibrary.com/coms2/summary_0286-33603704_ITM |title=Information and results for 'Bill Me Later, Inc. Named a Red Herring Global 100 Winner.' &#124; AccessMyLibrary - Promoting library advocacy |publisher=AccessMyLibrary |date= |accessdate=2013-09-06}}</ref>
'''PayPal Credit''', formerly named '''Bill Me Later''' ('''BML'''), is a proprietary [[buy now, pay later]] payment method offered on merchant websites, including those of [[Wal-Mart]], [[Home Depot]], [[USPS]] and [[eBay]] in the United States.<ref>{{cite book|url=https://books.google.com/books?id=x6Z1L8kV7NcC&q=%22bill+me+later%22&pg=PA428 |title=Internet Law: A Field Guide - Jonathan D. Hart - Google Boeken |isbn=9781570186837 |accessdate=2013-09-06|last1=Hart |first1=Jonathan D. |year=2007 |publisher=BNA Books }}</ref> The site provides consumers with a line of [[revolving credit]] through [[Synchrony Bank]].<ref>{{cite web |url=https://www.consumeraffairs.com/finance/paypal-credit.html |title=PayPal Credit Reviews - formerly Bill Me Later |date=June 6, 2024 |publisher=Consumer Affairs}}</ref>


On November 7, 2008, [[PayPal]] completed its acquisition of Bill Me Later. It was formerly owned by I4 Commerce.<ref>{{cite web|url=http://www.accessmylibrary.com/coms2/summary_0286-32629188_ITM |title=Information and results for 'I4 Commerce Changes Name to Bill Me Later, Inc.' &#124; AccessMyLibrary - Promoting library advocacy |publisher=AccessMyLibrary |date= |accessdate=2013-09-06}}</ref>
It allows purchases to be made online without the use of a [[credit card]] by creating a line of credit. Customer, can either pay off the balance at a later date or pay it in installments. The company was one of the first recipients of the Red Herring Global 100 Award by the publication [[Red Herring (magazine)|Red Herring]].<ref>{{cite web|url=http://www.accessmylibrary.com/coms2/summary_0286-33603704_ITM |title=Information and results for 'Bill Me Later, Inc. Named a Red Herring Global 100 Winner.' &#124; AccessMyLibrary - Promoting library advocacy |publisher=AccessMyLibrary |date= |accessdate=2013-09-06}}</ref>


On November 7 2008, [[PayPal]] completed its acquisition of Bill Me Later. It was formerly owned by I4 Commerce <ref>{{cite web|url=http://www.accessmylibrary.com/coms2/summary_0286-32629188_ITM |title=Information and results for 'I4 Commerce Changes Name to Bill Me Later, Inc.' &#124; AccessMyLibrary - Promoting library advocacy |publisher=AccessMyLibrary |date= |accessdate=2013-09-06}}</ref> and created by GoPin Inc.<ref>{{Cite web |date=2002-04-11 |title=GoPin - Intelligent Transaction Processing for Merchants |url=http://gopin.com/index.html |access-date=2023-07-25 |archive-url=https://web.archive.org/web/20020411165740/http://gopin.com/index.html |archive-date=2002-04-11 }}</ref>
==How it works==
⚫
After customers open their accounts (including credit check), PayPal Credit asks customers at every purchase to log into their PayPal account to complete the transaction. The approved customer can then pay the bill by mail (check), phone or online (via bank account) at www.PayPal.com. Once the PayPal Credit account is linked to PayPal, it becomes a funding option within the PayPal account and gives the option to pay off the PayPal Credit balance. Customers also get an email whenever they are declined. In cases when they are declined and they don't receive declined email/letter, they can contact PayPal Credit Customer Service to check if it was not a system issue. PayPal Credit is not a credit card but a revolving line of credit offered by Synchrony Bank. Much like a traditional credit card, the company will charge late payments if necessary.


==Terms==
== History ==
The company was established as I4 Commerce in 2000. It obtained corporate debt financing in 2006 to continue to grow the business.<ref>{{cite news |url=https://go.gale.com/ps/i.do?id=GALE%7CA155738250&sid=sitemap&v=2.1&it=r&p=AONE&sw=w&userGroupName=anon%7Ea8ca0b15&aty=open-web-entry |title=I4 Commerce Secures $640 Million Debt Financing from Citigroup |date=December 11, 2006 |publisher=PR Newswire}}</ref> In 2007 the company changed its name to ''Bill me Later''.<ref>{{cite news |url=https://www.digitalcommerce360.com/2007/08/20/i4-commerce-changes-name-to-bill-me-later-inc/ |title=I4 Commerce Changes Name to Bill Me Later, Inc. |date=August 20, 2007 |publisher=Digital Commerce 360 }}</ref>
⚫
For purchases of $99 and over that are made through PayPal wallet, customers have 6 months to pay their bill in full. If they don't, then they are charged interest at a 19.99% APR starting from the original purchase date. Purchases not made through the PayPal wallet will only receive promotional financing if the merchant is offering it.


On November 7, 2008, PayPal completed its acquisition of Bill Me Later and rebranded it as PayPal Credit.<ref>{{cite web|url=http://www.accessmylibrary.com/coms2/summary_0286-32629188_ITM |title=Information and results for 'I4 Commerce Changes Name to Bill Me Later, Inc.' &#124; AccessMyLibrary - Promoting library advocacy |publisher=AccessMyLibrary |date= |accessdate=2013-09-06}}</ref><ref>{{Cite web |date=2002-04-11 |title=GoPin - Intelligent Transaction Processing for Merchants |url=http://gopin.com/index.html |access-date=2023-07-25 |archive-url=https://web.archive.org/web/20020411165740/http://gopin.com/index.html |archive-date=2002-04-11 }}</ref> After the PayPal acquisition, Bill Me Later was offered as a payment method through PayPal at sites that accept both PayPal and Bill Me Later.<ref>{{cite web|title=Bill Me Later FAQ|url=https://www.billmelater.com/help/index.xhtml#topic8|accessdate=28 January 2013}}</ref>
==Developers/new merchant integration==
Unlike its parent company [[PayPal]] which is available to most e-commerce entities, Bill Me Later isn't available to most businesses. New merchants can request integration through a website operated by the company.


⚫
On May 19, 2015 [[CFPB]] filed a complaint and proposed consent order in federal court against PayPal, Inc. for illegally signing up consumers for its online credit product.<ref>{{cite web|url=https://www.theverge.com/2015/5/19/8627527/paypal-stuck-with-25-million-in-fines-by-cfpb |title=PayPal stuck with $25 million in fines for signing users up to its credit program |publisher=TheVerge.com |date= 19 May 2015|accessdate=2015-05-19}}</ref>
== Other products ==
⚫
Besides its flagship consumer service, Bill Me Later also offers Bill Me Later Business (As of May 13, 2012 Bill Me Later Business has been discontinued) (seen at [[USPS]]) and Preferred Account (seen at [[Newegg]]). In Bill Me Later Business, the users are business owners who want to use the equivalent of a corporate card for buying products and services over the web. The business owner would apply for Bill Me Later Business - using data like EIN etc. The Preferred Account is similar to the concept of a charge card - that can be used at a particular merchant only.<ref>{{cite web|url=http://www.billmelatersolutions.com/ |title=Mobile Technology and Usage Trends 2012 – PayPal |publisher=Billmelatersolutions.com |date= |accessdate=2013-09-06}}</ref>


⚫
Prior to 2012, besides its consumer service, Bill Me Later also offered Bill Me Later Business and Preferred Account. In Bill Me Later Business, the users were business owners who want to use the equivalent of a corporate card for buying products and services over the web. The business owner would apply for Bill Me Later Business account. The Preferred Account was similar to the concept of a charge card that could be used at a particular merchant only.<ref>{{cite web|url=http://www.billmelatersolutions.com/ |title=Mobile Technology and Usage Trends 2012 – PayPal |publisher=Billmelatersolutions.com |date= |accessdate=2013-09-06}}</ref> This service was discontinued as of May 13, 2012.
As of July 2018, there is no available list of online retailers where PayPal credit is accepted. Moreover, PayPal credit is not available as a payment method on all websites where PayPal is accepted.


In 2021, PayPal credit card also admitted to converting gift cards to cash with few conditions.<ref>{{Cite web|date=2021-01-24|title=How to Transfer Money from Gift Card to Bank Account|url=https://itgust.com/transfer-money-from-gift-card-to-bank-account/|access-date=2021-04-15|website=ITGust|language=en-US}}</ref>
== Bill Me Later in PayPal wallet ==
After the PayPal acquisition of Bill Me Later, Bill Me Later is offered as a payment method through PayPal at sites that both accept PayPal and Bill Me Later. PayPal balances are accepted as payment on Bill Me Later statements.<ref>{{cite web|title=Bill Me Later FAQ|url=https://www.billmelater.com/help/index.xhtml#topic8|accessdate=28 January 2013}}</ref>


== Lawsuits ==
==Process==
⚫
After a customer opens an accounts (including credit checks), PayPal Credit asks customers at every purchase to log into their PayPal account to complete the transaction. Once the PayPal Credit account is linked to PayPal, PayPal credit becomes a funding option within the PayPal account. PayPal credit will email the customer whenever they are declined. PayPal Credit is not a credit card but a revolving line of credit offered by Synchrony Bank. Much like a traditional credit card, the company will charge late payments if necessary.<ref>{{Cite web|title=Credit Cards|date=4 August 2020 |url=https://www.creditcards.com/credit-card-news/paypal-credit-a-guide-to-paypal-virtual-credit-line/}}</ref>
⚫
On May 19, 2015 [[CFPB]] filed a complaint and proposed consent order in federal court against PayPal, Inc. for illegally signing up consumers for its online credit product, however, a judge has to approve if there was any law infringement before moving the case to court.<ref>{{cite web|url=https://www.theverge.com/2015/5/19/8627527/paypal-stuck-with-25-million-in-fines-by-cfpb |title=PayPal stuck with $25 million in fines for signing users up to its credit program |publisher=TheVerge.com |date= |accessdate=2015-05-19}}</ref>


==External links==
==Terms==
⚫
{{As of |2019}}, for purchases of $99 and over that are made through PayPal wallet, customers have 6 months to pay their bill in full. If they don't, then they are charged interest at a 19.99% APR starting from the original purchase date. Purchases not made through the PayPal wallet will only receive promotional financing if the merchant is offering it. Customers using this service should be aware that using PayPal credit for conveniences such as snacks or food orders which contain alcohol are not allowed to be paid with PayPal Credit and must use a different payment method to complete their transaction. <ref>{{cite web | url=https://www.instacart.com/paypal | title=Instacart & PayPal &#124; Grocery Delivery with PayPal }}</ref>
*[https://www.billmelater.com/index.xhtml billmelater.com homepage]
*[https://www.paypal.com/credit PayPal Credit homepage]


==References==
==References==
{{reflist}}
{{reflist}}
* http://www.consumeraffairs.com/credit_cards/bill_me_later.html?page=2


[[Category:PayPal]]
[[Category:PayPal]]
[[Category:Financial services companies established in 2000]]
[[Category:2008 mergers and acquisitions]]
[[Category:2008 mergers and acquisitions]]

Latest revision as of 04:49, 11 October 2024

PayPal Credit
Type of businessSubsidiary
Founded2000; 25 years ago (2000) in Timonium, Maryland, United States
HeadquartersSan Jose, California
Area servedUnited States
OwnerPayPal
IndustryFinancial services
ParentPayPal
URLwww.paypal.com/credit
Advertisingnone
Current statusactive

PayPal Credit, formerly named Bill Me Later (BML), is a proprietary buy now, pay later payment method offered on merchant websites, including those of Wal-Mart, Home Depot, USPS and eBay in the United States.[1] The site provides consumers with a line of revolving credit through Synchrony Bank.[2]

It allows purchases to be made online without the use of a credit card by creating a line of credit. Customer, can either pay off the balance at a later date or pay it in installments. The company was one of the first recipients of the Red Herring Global 100 Award by the publication Red Herring.[3]

On November 7 2008, PayPal completed its acquisition of Bill Me Later. It was formerly owned by I4 Commerce [4] and created by GoPin Inc.[5]

History

[edit]

The company was established as I4 Commerce in 2000. It obtained corporate debt financing in 2006 to continue to grow the business.[6] In 2007 the company changed its name to Bill me Later.[7]

On November 7, 2008, PayPal completed its acquisition of Bill Me Later and rebranded it as PayPal Credit.[8][9] After the PayPal acquisition, Bill Me Later was offered as a payment method through PayPal at sites that accept both PayPal and Bill Me Later.[10]

On May 19, 2015 CFPB filed a complaint and proposed consent order in federal court against PayPal, Inc. for illegally signing up consumers for its online credit product.[11]

Prior to 2012, besides its consumer service, Bill Me Later also offered Bill Me Later Business and Preferred Account. In Bill Me Later Business, the users were business owners who want to use the equivalent of a corporate card for buying products and services over the web. The business owner would apply for Bill Me Later Business account. The Preferred Account was similar to the concept of a charge card that could be used at a particular merchant only.[12] This service was discontinued as of May 13, 2012.

In 2021, PayPal credit card also admitted to converting gift cards to cash with few conditions.[13]

Process

[edit]

After a customer opens an accounts (including credit checks), PayPal Credit asks customers at every purchase to log into their PayPal account to complete the transaction. Once the PayPal Credit account is linked to PayPal, PayPal credit becomes a funding option within the PayPal account. PayPal credit will email the customer whenever they are declined. PayPal Credit is not a credit card but a revolving line of credit offered by Synchrony Bank. Much like a traditional credit card, the company will charge late payments if necessary.[14]

Terms

[edit]

As of 2019, for purchases of $99 and over that are made through PayPal wallet, customers have 6 months to pay their bill in full. If they don't, then they are charged interest at a 19.99% APR starting from the original purchase date. Purchases not made through the PayPal wallet will only receive promotional financing if the merchant is offering it. Customers using this service should be aware that using PayPal credit for conveniences such as snacks or food orders which contain alcohol are not allowed to be paid with PayPal Credit and must use a different payment method to complete their transaction. [15]

References

[edit]
  1. ^ Hart, Jonathan D. (2007). Internet Law: A Field Guide - Jonathan D. Hart - Google Boeken. BNA Books. ISBN 9781570186837. Retrieved 2013-09-06.
  2. ^ "PayPal Credit Reviews - formerly Bill Me Later". Consumer Affairs. June 6, 2024.
  3. ^ "Information and results for 'Bill Me Later, Inc. Named a Red Herring Global 100 Winner.' | AccessMyLibrary - Promoting library advocacy". AccessMyLibrary. Retrieved 2013-09-06.
  4. ^ "Information and results for 'I4 Commerce Changes Name to Bill Me Later, Inc.' | AccessMyLibrary - Promoting library advocacy". AccessMyLibrary. Retrieved 2013-09-06.
  5. ^ "GoPin - Intelligent Transaction Processing for Merchants". 2002-04-11. Archived from the original on 2002-04-11. Retrieved 2023-07-25.
  6. ^ "I4 Commerce Secures $640 Million Debt Financing from Citigroup". PR Newswire. December 11, 2006.
  7. ^ "I4 Commerce Changes Name to Bill Me Later, Inc". Digital Commerce 360. August 20, 2007.
  8. ^ "Information and results for 'I4 Commerce Changes Name to Bill Me Later, Inc.' | AccessMyLibrary - Promoting library advocacy". AccessMyLibrary. Retrieved 2013-09-06.
  9. ^ "GoPin - Intelligent Transaction Processing for Merchants". 2002-04-11. Archived from the original on 2002-04-11. Retrieved 2023-07-25.
  10. ^ "Bill Me Later FAQ". Retrieved 28 January 2013.
  11. ^ "PayPal stuck with $25 million in fines for signing users up to its credit program". TheVerge.com. 19 May 2015. Retrieved 2015-05-19.
  12. ^ "Mobile Technology and Usage Trends 2012 – PayPal". Billmelatersolutions.com. Retrieved 2013-09-06.
  13. ^ "How to Transfer Money from Gift Card to Bank Account". ITGust. 2021-01-24. Retrieved 2021-04-15.
  14. ^ "Credit Cards". 4 August 2020.
  15. ^ "Instacart & PayPal | Grocery Delivery with PayPal".
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