Tim Kerber

Bill Me Later

They are using a "Bill Me Later" service provided by i4 Commerce.

As the name suggests, it allows people to set themselves up on a payment plan option to delay paying for their orders.

eToys wasn't sure what to expect from implementing this new payment service. They are happy with the results that they are seeing.

7% of customers are choosing the Bill Me Later option, so there seems to be a reasonable acceptance of it. The interesting thing is that these customers order 5-10% more on average than the people not using the Bill Me Later option.

The System

By using the Bill Me Later service, customers are given instant credit to purchase the items. They aren't issued a credit card, but an account is opened for them.

An instant credit check is run on the customer for approval. If the transaction is declined, then other traditional payment options are provided for them.

Once they are approved, they then have the option of paying off the purchase before any finance charges accrue. If the balance isn't paid off within 25 days, then the finance charge is 17.9%

This system is proving to be pretty popular and is worth some online ecommerce sites to take a look at. The acceptance of the system is impressive and a nice side result appears to be an increase in the average order size.

You can check out the Bill Me Later service from i4 Commerce by clicking here.

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