PayPal Pay After Delivery soon available in the Netherlands
PayPal’s Pay After Delivery will soon be available in the Netherlands, which makes it the third country after the United States and Spain to offer this service to its customers. With Pay After Delivery customers get 14 days for their item to be delivered before they pay for their purchase.
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And online retailers do not have to worry, as PayPal will lend the money. This way the retailer doesn’t have to wait any longer for its money. For now, the service will only be available for the company’s most active users, Dutch ecommerce blog Emerce wrote today. These are users PayPal have a sustainable relationship with.
“In reality, this is only about one percent of all our customers”, Eelco van Wijk, General Manager Benelux at PayPal, told during a press meeting in San Jose, California. Eventually all users will get the opportunity to use the Pay After Delivery service, but for these people PayPal need to make a risk profile.
“Everyone is trying to make their digital accounts more useful to consumers so that frequency of use is established and consumers develop both a habit and a preference for using those accounts”, Market Platform Dynamics CEO Karen Webster tells Pymnts.com. “PayPal’s Pay After Delivery service is designed to establish preference by essentially enabling short term credit for qualified purchases made using its payment method. Merchants are paid right away, so this isn’t coming out of the merchant’s hide. PAD seems a focused strategy to differentiate PayPal and make it more to consumers than just a convenient and secure way to pay online and in stores.”
‘Bad news for sellers’
According to some users on eBay Community PayPal’s Pay After Delivery service is “bad news for sellers” or “a good way to get ripped off”. “It’s yet another way for buyers to get out of a sale. Buyers can now file a (bogus) dispute, avoid paying for the item, something they now have in their possession”, a user says.