NEW ORLEANS--June 25, 2004--In a move toward offering its buyers more purchasing options, PayPal today announced PayPal Buyer Credit, a convenient, flexible and secure way for buyers to make purchases online. Through an agreement with GE Consumer Finance, one of the leading providers of consumer credit, PayPal Buyer Credit offers U.S. PayPal customers the option to open a line of credit to fund purchases on eBay (Nasdaq:EBAY) or any other Web site that accepts PayPal.
With PayPal Buyer Credit, customers can increase their purchasing power, allowing them to buy items when they want them and pay for them when they choose. Additionally, by using PayPal Buyer Credit for their purchases, buyers receive full Buyer Protection from PayPal if their items are significantly different than described on eBay, or if their items are never received.
PayPal Buyer Credit also benefits qualified eBay sellers by giving them the ability to offer deferred interest for up to three, six or 12 months for buyer purchases over $199. With these promotional financing offers, eBay sellers of all sizes can make their items more affordable to buyers and be competitive with traditional retailers that offer similar financing. Because buyers make payments directly to GE Consumer Finance, sellers are not at risk of buyer payment default. Sellers get paid in full by PayPal immediately upon close of the transaction.
"PayPal Buyer Credit gives buyers additional purchasing power with more flexibility to determine what they're comfortable paying and when," said Chris George, director of eBay financial services. "And for sellers, this new program is just one more example of how PayPal and eBay are truly leveling the playing field. Promotional financing is increasingly used by traditional retailers to effectively merchandise and drive sales of higher-priced items. Now, an eBay merchant of any size can attract more buyers by offering similar financing options."
"We're thrilled to work with PayPal and to give millions of registered customers in the United States the opportunity to access lines of credit to help fund their purchases," said Mark W. Begor, president and CEO of GE Consumer Finance -- Americas. "Working with GE Consumer Finance, PayPal now has the ability to help qualified sellers offer alternative financing for purchases, ultimately helping them to grow their businesses on and off of eBay."
Customers who apply for PayPal Buyer Credit receive a credit decision in as soon as 30 seconds. Credit lines are determined by GE Consumer Finance according to the buyer's credit history. PayPal Buyer Credit applications can be accessed from the PayPal Web site at https://www.paypal.com/buyercredit.
Attendees at eBay Live! can learn how eBay and PayPal are helping users scale their businesses through PayPal Buyer Credit, by attending a class entitled "Financing for Buyers and Sellers." The class, instructed by Chris George, will take place on Friday, June 25 from 2 p.m. to 3:30 p.m., in La Louisiane ballroom A at the Morial Convention Center in New Orleans.
PayPal, an eBay Company, enables any individual or business with an email address to securely, easily and quickly send and receive payments online. PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards and utilizes the world's most advanced proprietary fraud prevention systems to create a safe, global, real-time payment solution. Founded in 1998, PayPal has more than 45 million accounts and is available to users in 45 countries around the world. More information about the company can be found at https://www.paypal.com/.