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Bill Me Later: The 'frictionless' online payment alternative
Given the powerful double-digit growth of e-commerce during the first decade of the industry, few merchants worried that a payment alternative to credit cards or the well-established PayPal was needed. More recently, however, as e-commerce growth rates slow, the fast-growing, credit card-free alternative Bill Me Later has proven that merchants and consumers alike are hungry for alternatives.
Though it has focused mainly on the largest online merchants, Bill Me Later has seen rapid growth. 22% of online buyers used Bill Me Later to make a purchase during the holiday shopping season, according to the Piper Jaffray eCommerce Survey for the fourth quarter of 2007.
Bill Me Later, which allows users to provide limited information and to be billed later for purchases they make online, got a huge profile boost late in 2007 when Amazon announced it would offer the payment alternative and would make an investment in the company.
