Ebay is the parent company of Paypal and it won’t be surprising if it has decided to acquire the up and coming star in payment processing company Bill Me Later. Even Amazon knows its potential and has invested quite an amount of money into the company late last year.
The way Bill Me Later works is you enter your birth date and last four digits of your social security number online, and it does a credit check on you in three seconds to determine whether you are worth the risk. Bill Me Later pays the merchant, and sends you a bill.
Hate to say it but I personally feel that it might have been better for consumers if the ebay and BillMeLater deal haven’t been approved. Now ebay can leverage what BillMeLater has been doing and continue to strengthen Paypal’s position.
PayPal already had a “pay later” scheme. It’s obvious that eBay needed to buy market share as BillMeLater must have been getting great market traction.
As a user who has been using Paypal for more then 4 years now, I don’t even know that Paypal has that functionality until recently.
That’s really a strategic move by ebay. Saw BillMeLater on buy.com as well. Are there any other big merchants who are using BillMeLater too?