Online retailer Overstock.com has announced a new payment option that allows customers to “shop now and pay later.”
The online retailer is adding the promotional financing service, PayPal Pay Later, to its purchasing options.
The service is a new offering from PayPal, an e-commerce business allowing payments and money transfers to be made through the Internet. It allows customers to defer payments on purchases they make on Overstock for 90 days, even if they don’t have a Pay Pal account.
“Overstock.com offers consumers access to great online deals for brand-name merchandise,” said Chris George, senior director of financial products at PayPal, in a statement. “We are excited to give Overstock.com shoppers even more ways to pay for purchases with the security and convenience of PayPal.”
Overstock decided to offer the new Pay Pal option to give consumers another purchasing option.
“The research you hear all over the place says any time you can add another payment option, it has a good chance to add incremental sales,” said Alan Johnson, director of payments and fraud prevention with Overstock.com.
Overstock has offered Pay Pal as a payment option on its site since November. It also has a “bill me later” financing option, but it found customers using the two options did not often overlap.
“We wanted to give the Pay Pal customers a bill-me-later option,” he said.
Johnson said Overstock over the next few months will be “looking at a number of metrics…and see if it meets our internal needs.”
PayPal is a wholly owned subsidiary of EBay.