Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced its Retail Services business, which manages more than 120 branded credit programs, has come to multiple agreements with payments industry leader PayPal, an eBay Inc. (NASDAQ: EBAY) subsidiary.
Under a multi-year agreement with PayPal, Alliance Data will become an issuer for Bill Me Later® credit products and will maintain a partial interest in the receivables generated under the program. Bill Me Later is a PayPal service that lets you buy now and pay later once you're approved and is a secure, instant, and reusable credit line that doesn't require qualifying customers to keep another credit card in their wallets. Bill Me Later is offered as a payment option at thousands of online stores.
Additionally, Alliance Data and PayPal have agreed to collaborate to support PayPal's offline expansion, which is enabling PayPal to be accepted in more physical merchant locations across the U.S. Alliance Data will work with PayPal to develop and pilot strategies that drive growth for both companies. Consumers who hold a branded private label credit card from Alliance Data's partners that accept PayPal payments will be able to add their branded card through PayPal and continue to use it as their preferred method of payment for PayPal purchases made with those brands when shopping online, in-store or on a mobile device. Alliance Data's private label partners - which include many top-tier specialty retailers - will have the opportunity to begin adding their branded card programs into PayPal in early 2014.
"We're excited to work with Alliance Data Retail Services, a leader in providing highly successful branded credit programs for numerous marquee retailers, and a company whose reputation for delivering excellence makes them a great choice," said Don Kingsborough, vice president, Retail Services at PayPal. "Offering our mutual retail clients the convenience and security of PayPal allows them to reinforce their relationships with consumers and will help them sell more."
"PayPal is a recognized powerhouse in the payments world, widely known for its innovative products, services and visionary thinking, and we are thrilled to have the the opportunity to work with them to bring smart credit solutions to their customers," added Melisa Miller, president of Alliance Data Retail Services. "The relationship between PayPal and Alliance Data marks our strategic entry into a new ecosystem of customer transactions while continuing to drive business growth for our partners' private label credit and loyalty programs. We look forward to working with PayPal and exploring even more opportunities to collaborate in the future."