Online payment firm PayPal is offering US users the option of opening a line of credit to fund purchases over the Internet.
PayPal Buyer Credit is being made available through an agreement with GE Consumer Finance. Credit lines are determined according to the buyer's credit history and an offer made within 30 seconds.
PayPal users can apply for credit direct, or reach an arrangement with sellers over Internet auction site and PayPal parent eBay. Qualified eBay sellers will be able to offer deferred interest for up to three, six or 12 months for buyer purchases over $199.
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.
Chris George, director of eBay financial services, says: "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."