PayPal Credit

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PayPal Credit
Type of businessSubsidiary
Founded2000, Timonium, Maryland, United States
HeadquartersTimonium, Maryland
Current statusactive

PayPal Credit, formerly named Bill Me Later (BML), is a proprietary payment method offered on the websites of many well-known merchants, including those of Wal-Mart, Home Depot, USPS, B&H Photo Video, Best Buy,, JetBlue Airways, Liquidation Channel, Jewelry Television and[1] The site, which offers consumers a line of revolving credit through Synchrony Bank, allows purchases to be made online without using a credit card. The company was one of the first recipients of the Red Herring Global 100 Award by the publication Red Herring.[2]

On November 7, 2008, PayPal completed its acquisition of Bill Me Later. It was formerly owned by I4 Commerce.[3]

How it works[edit]

After customers open their accounts (including credit check), PayPal Credit asks customers at every purchase to log into their PayPal account to complete the transaction. The approved customer can then pay the bill by mail (check), phone or online (via bank account) at Once the PayPal Credit account is linked to PayPal, it becomes a funding option within the PayPal account and gives the option to pay off the PayPal Credit balance. Customers also get an email whenever they are declined. In cases when they are declined and they don't receive declined email/letter, they can contact PayPal Credit Customer Service to check if it was not a system issue. PayPal Credit is not a credit card but a revolving line of credit offered by Synchrony Bank. Much like a traditional credit card, the company will charge late payments if necessary.


For purchases of $99 and over that are made through PayPal wallet, customers have 6 months to pay their bill in full. If they don't, then they are charged interest at a 19.99% APR starting from the original purchase date. Purchases not made through the PayPal wallet will only receive promotional financing if the merchant is offering it.

Developers/new merchant integration[edit]

Unlike its parent company PayPal which is available to most e-commerce entities, Bill Me Later isn't available to most businesses. New merchants can request integration through a website operated by the company.

Other products[edit]

Besides its flagship consumer service, Bill Me Later also offers Bill Me Later Business (As of May 13, 2012 Bill Me Later Business has been discontinued) (seen at USPS) and Preferred Account (seen at Newegg). In Bill Me Later Business, the users are business owners who want to use the equivalent of a corporate card for buying products and services over the web. The business owner would apply for Bill Me Later Business - using data like EIN etc. The Preferred Account is similar to the concept of a charge card - that can be used at a particular merchant only.[4]

As of July 2018, there is no available list of online retailers where PayPal credit is accepted. Moreover, PayPal credit is not available as a payment method on all websites where PayPal is accepted.

Bill Me Later in PayPal wallet[edit]

After the PayPal acquisition of Bill Me Later, Bill Me Later is offered as a payment method through PayPal at sites that both accept PayPal and Bill Me Later. PayPal balances are accepted as payment on Bill Me Later statements.[5]


On May 19, 2015 CFPB filed a complaint and proposed consent order in federal court against PayPal, Inc. for illegally signing up consumers for its online credit product, however, a judge has to approve if there was any law infringement before moving the case to court.[6]

External links[edit]


  1. ^ Hart, Jonathan D. (2007). Internet Law: A Field Guide - Jonathan D. Hart - Google Boeken. ISBN 9781570186837. Retrieved 2013-09-06.
  2. ^ "Information and results for 'Bill Me Later, Inc. Named a Red Herring Global 100 Winner.' | AccessMyLibrary - Promoting library advocacy". AccessMyLibrary. Retrieved 2013-09-06.
  3. ^ "Information and results for 'I4 Commerce Changes Name to Bill Me Later, Inc.' | AccessMyLibrary - Promoting library advocacy". AccessMyLibrary. Retrieved 2013-09-06.
  4. ^ "Mobile Technology and Usage Trends 2012 – PayPal". Retrieved 2013-09-06.
  5. ^ "Bill Me Later FAQ". Retrieved 28 January 2013.
  6. ^ "PayPal stuck with $25 million in fines for signing users up to its credit program". Retrieved 2015-05-19.