Sunday, November 6, 2011

Bill Me Later: Change Your Mind about Payment Method

Consumers assume they will have a choice of payment formats when checking out at a retail location, ranging from cash to debit to credit, prepaid or postpaid instruments.

Mobile wallet systems likely will attempt to make that process easier. PayPal's "Bill Me Later" enables users to decide on their payment method up to five days after a purchase.

Bill Me Later provides credit for individual purchases by performing risk analysis during the checkout process, based on little more information than what a customer regularly provides to merchants. By weaving this technology into a mobile wallet, PayPal can issue customer credit and provide a five-day float for each purchase. The customer can change the funding option for each transaction within that time.

It isn't so clear that this will become a major attraction, but it suggests the many nuances of mobile payment that could potentially change the user experience or retail advantage.

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