If you have a PayPal account, you might have seen recent promotional messages about the “Bill Me Later” service, which is part of the PayPal family (PayPal purchased “Bill Me Later” at the end of 2008).

E-mails promoting this payment option were recently sent to consumers that have a PayPal account (and in a tough economy, the service might indeed attract more buyers that wish to delay payment). So, as a merchant, you might be wondering: how do I turn on Bill Me Later on my ecommerce store?

• Quick answer: you don’t. It’s automated.
• Long answer… read on.

How it works
PayPal automatically enables Bill Me Later in the Express Checkout “wallet” (i.e. list of available “ways” to pay for the order) at all eligible merchants for eligible users. Even within the same store, not all purchases may qualify. Exclusions include: adult, digital goods, weapons, alcohol, currency, motors (except parts and accessories), non-US sellers, and U.S. sellers with third party checkout. See this page for some FAQs and contact PayPal for more details.

Customer Experience
As a customer checking out on a store that uses Express Checkout, you might have access to “Bill Me Later” as a founding source for paying for the order through PayPal Express Checkout, assuming the merchant and the purchase is eligible.

Merchant Experience
At this time (July 2010), nothing changes for merchants. In fact, you won’t even be able to know whether Bill Me Later was used because the transaction will appear as a normal PayPal Express Checkout payment. Bill Me Later is simply considered another funding source by PayPal. You will receive your money from PayPal, regardless of whether Bill Me Later was used by the customer to pay for the order.

Hope this clarifies things! If you have a question about whether or not Bill Me Later is already active on your store, try checking out as a customer with Express Checkout, or contact your PayPal account manager.