Mobile Commerce

PayPal Encouraging UK Shoppers to Pay Later

PayPal has expanded its ‘Pay After Delivery’ program to the UK and many sellers are not happy with the decision.

With this program, PayPal we’ll pay the seller right away and will only request the money from the buyer’s bank account 14 days later.

“This gives you the time to receive the item before you pay. If the item doesn’t arrive or isn’t what you expected, you’re covered by PayPal Buyer Protection,” the company said in a statement.

According to eCommerce Bytes, those who are upset about the program feel that the program promotes a “buy before you try” mentality and could lead to a growing number of returns.

However, PayPal is reassuring everyone that the program has actually saved the company money and buyers are more inclined to spend more when they don’t have to pay right away.

“In addition, PayPal then has complete control over the dispute process. (When using credit cards as a funding source, buyers have the option of disputing transactions or filing chargebacks through the credit card companies,” PayPal stated. “And since PayPal also offers seller protection, it wants to be the sole arbiter of disputes.)”


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