Business, Mobile Computing, VR World

PayPal's Pay After Delivery: A 2-Week Line of Credit

PayPal has announced the availability of its Pay After Delivery feature, which enables users to pay for goods up to 14 days after making the purchase. Announced at the ongoing Money2020 conference, the service had been in pilot in Europe for some time now, making its official debut in the US after positive consumer feedback.

According to PayPal, this move was done in order to give customers “the same level of confidence whether they shop online or in store.” By paying for goods once or after receiving the delivery, customers will have peace of mind that they will not need to part with their money even before receiving the goods in the mail.

Pay After Delivery also gives users a choice as to their source of funding once they decide to confirm the payment — this may include PayPal balance, credit card or bank account. Pay After Delivery essentially gives customers a 14-day line of credit for making online purchases, so the feature requires a Verified account and is currently available to US account holders. The company does plan to roll out the functionality to other regions on a gradual basis.

The electronic payments space is heating up, especially with Apple’s (NASDAQ:APPL) big push to popularize Apple Pay amongst users of compatible mobile and wearable devices. With mobile helping reduce transactional friction, companies like PayPal need to find ways to innovate or at least make existing offerings more convenient to use. PayPal is actually being spun off of its eBay parent company, in order to improve its focus.

Apart from the Pay After Delivery feature, the company has also made recent partnerships that enable users to place orders ahead of time and pay only when they get the actual goods. In this case, PayPal has co-developed a mobile app with Tillster for use across Burger King (NYSE: BKW) restaurants across the US. Diners can place orders through the iOS or Android app, and the payment will only be debited once the user shows a code to the Burger King cashier.

For its enterprise and small business customers, PayPal has also announced a partnership with GoDaddy, which will pre-install the PayPal Express Checkout button for its clients that use the GoDaddy Online Store. Likewise, PayPal has partnered with Visa-owned Authorize.Net and Cybersource, which will enable small business customers to accept PayPal payments along with other payment methods.