PayPal have launched a new Top Buyer program in the US called PayPal Advantage, and one of the new features they’re testing is the ability to buy (both on and off eBay) and only pay when the goods are delivered.
According to a post on the “Pay After Delivery” allows you to check out as normal and select Pay After Delivery as your payment method, receive and verify your purchase and then if you’re satisfied PayPal will automatically withdraw the money from your bank account 14 days after your purchase.
There should be no difference to the seller, and in fact just as you can’t tell if a purchase is funded by credit card or PayPal balance you also won’t know when the buyer has paid with Pay After Delivery. PayPal will be funding the purchase upfront so as a seller you’ll still be paid before the goods are shipped.
Other benefits of the PayPal Advantage program are Priority Telephone support with a free phone number, exclusive access to offers from merchants and invitations to spend time with PayPal employees at exclusive events.
This looks very much like a soft integration of Bill Me Later, the credit facility allowing shoppers to buy online and pay later. PayPal purchased Bill Me Later in October 2008 and it makes sense to start merging the offerings of the two companies.
Pay After Delivery is an interesting concept as it removes concerns about purchases arriving and being as described. However as it’s being offered only to PayPal’s most loyal and prolific customers at the moment these are the people who are already spending online. Would you spend more if you could pay after delivery and would it give you more peace of mind knowing you can examine the goods once they arrive before the payment is taken from your bank account?