Rather than needing a PayPal balance or using funds from a credit card or bank account buyers can make their purchase and pay on finance at a future date.
Whilst eBay didn’t give a hard date for Bill Me Later to go live in the UK, this was the first indication that it would be coming. We’ve yet to find out the costs for the UK, but with an APR of 19.99% in the USA it’s not an attractive long term finance option. However for customers who simply want to delay payment until pay day and then clear their balance if full it’s ideal. The minimum US finance charge is $2.00.
Personally although I wouldn’t encourage anyone to take out credit that they can’t afford, if it means consumers can purchase from me and I get payment then using Bill Me Later to finance the payment looks like a good move for increased sales.