As credit card companies reduce consumer spending limits and people become more conscious of how much they’re spending on credit cards, same-as-cash installment plans and online payment alternatives gain in popularity. Some of the more popular online payment method alternatives to credit include eBillme, Bill Me Later, PayPal and ShopText
eBillme lets customers make purchases using their banking account without entering thei rbank card or checking account number on the store’s website. The company promotes itself as a secure payment option that does not require a credit card.
Bill Me Later was purchased by eBay for $945 million in October. It’s an online payment option offered by about 1,000 retailers now, and more on the way. Bill Me Later will require the name, address, birthday and last four digit of a shoppers social security at checkout, and then authorizes or denies credit within seconds. If approved for the “credit” the consumer is sent a bill, which is due on a certain date or can be paid with multiple payments, often in a same-as-cash (no interest) period.
Unlike a credit card, which offers a specific line of credit, “we make decisions based on [a single] transaction,” said Bill Me Later spokeswoman Sara Parker. Using Bill Me Later requires good credit, but helps people who are trying to be disciplined with their credit card use.
ShopText is looking to give consumers a way to order the things they see on TV or online by texting on their mobile phones.
PayPal is one of the leading online payment systems that allows people to choose to pay from their bank accounts or credit card without revealing their financial information to the retailers. Paypal also offers credit to qualified users and is tied in to the user’s Paypal account.
I think we can expect to see more same-as-cash or online installment plan methods of paying that don’t require the use of a credit card in the future.
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