PayPal adds pay later feature

PayPal has rolled out a new credit financing option called PayPal Pay Later.

This service is offered in cooperation with General Electric's GE Money Bank and will allow merchants to offer flexible financing options, like no payments for 90 days.

Of course, PayPal users will have to pay some extra fees, but it's not yet clear how high PayPal's interest rates will be.

According to a PayPal spokesperson a recent survey indicated that 56% of PayPal users are more likely to buy from an online shop if a deferred payment option is available.