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Summary:

EBay is continuing its buying spree, snapping up Germany’s BillSafe, a payment-by-invoice provider. The new acquisition will be rolled up into PayPal, which made a minority investment in BillSafe last year and collaborated on a joint online invoice payment solution for e-commerce customers.

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EBay is continuing its buying spree, snapping up Germany’s BillSafe, a payment-by-invoice provider. The acquisition will be rolled up into PayPal, which made a minority investment in BillSafe last year and collaborated on a joint online invoice payment tool for e-commerce customers. The price was not disclosed.

BillSafe allows customers to purchase a product immediately and pay for it by invoice later. This gives merchants and consumers another way to pay using PayPal. BillSafe is already used by 15 million account holders in Germany, where 19.6 percent of e-commerce transactions were paid by invoice. Paying by invoice is also the most popular form of payment in Austria, Germany, Switzerland and the Netherlands, said BillSafe.

Buying BillSafe adds to PayPal’s suite of tools for merchants who use PayPal. It already has BillMeLater, a service that allows customers to make a purchase immediately and then schedule payments at a later date. It’s a form of credit and it’s being used in PayPal’s new point-of-sale push, as a way for consumers to pay immediately and then change the funding source after a transaction. BillSafe allows PayPal to offer another secure payment option for consumers, who can inspect a product before they pay.

“German customers are extremely security-conscious, and they enjoy the convenience and safety of invoicing when they shop online. One of PayPal’s greatest assets is the security of our system, and we’re glad that we can now offer customers even more peace of mind with a payment method that they already know and prefer and that drives more sales for the merchants,” says Arnulf Keese, managing director of PayPal Germany. “Together with BillSafe, we can offer even more choices to our customers – whether they prefer to pay with their bank accounts, their credit cards or now through purchase on invoice,” Keese adds.

It’s unclear if PayPal will try to offer BillSafe outside of Europe. And it will be interesting to see if BillSafe is packaged up into X.commerce, eBay’s commerce operating system for merchants and retailers. The deal caps off a busy year for eBay, which previously bought Magento, GSI, WHERE, Zong, The Gifts Project and Hunch this year. EBay said the acquisition will not have a material impact on its later financial guidance.

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  1. As far as saving when buying on eBay goes:

    Use a site like Ebuyersedge.com to set up saved searches. You get an e-mail whenever a matching item is newly listed. Especially good for “Buy It Now”s that are priced right.

    Try a misspelling search using a site like Typojoe.com to hopefully find some great deals with items that have main key words misspelled in the title. Other interested buyers might not ever see them.

    If you see an auction that you want to bid on, use a sniping service such as Bidball.com to place your bid for you. It’ll bid in the last few seconds, helping you to save money and avoid shill bidding.

  2. Philip Charles Cohen Thursday, December 22, 2011

    Dream on JD, or better still “Beam me up Scotty [Thompson].”

    Gee, is it the eBafia or PreyPal that is now licensed to supply credit?

    Study Sees PayPal Adoption Down Among Multi-Channel Merchants

    “Twenty-two percent of EPIS merchants who had accepted PayPal on their own websites and off-eBay stores in October 2010 stopped accepting PayPal as a payment method on those sites in October 2011.

    “There were 19% more merchants who accepted credit cards on their own websites and stores in October 2011 than in October 2010.”

    http://www.auctionbytes.com/cab/abn/y11/m11/i21/s02

    Even better, Visa is to launch its new online payments gateway “V.me” next year. The idea is similar to that offered by PayPal: you upload details of your payment cards to Visa—even if they’re not Visa-branded—and Visa will process the payment without revealing your card details to the merchant.

    At least off-eBay online merchants will at last be able to free themselves from the parasitic, most unprofessional, unscrupulous and “clunky” PreyPal. And, undoubtedly, PreyPal will then atrophy back to it’s mandated use on the eBafia marketplace only, from whence, without its mandated use thereon, PreyPal would never have had the success that it has had.

    But, be in no doubt, except for its mandated use on whatever will be by then left of the Donahoe-stagnated eBay Marketplace, the clunky PreyPal will elsewhere be quickly buried by Visa’s professional offering, “V.me”, once it is up and running in 2012.

    So, no more underpinning of eBay’s sagging bottom line by the clunky PreyPal. What will the “eBafia Don” do then? Maybe, if Mittless Romney wins the GOP nomination we can hope that he will pick as his running mate his fellow “Pain from Bain”, the headless turkey, John Donahoe. Donahoe’s nearing the completion of his destruction of the eBay marketplace and so he should soon be looking for an even bigger challenge.

    PayPal claims PayPal Is Not a Payments Processor!
    http://forums.auctionbytes.com/vbulletin/showthread.php?t=24148

    eBay / PayPal / Donahoe: Dead Men Walking.

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