Consumer Credit Expansion Plans for PayPal and Alliance Data

by Mercator Advisory Group 0

In a newly formed strategic partnership, Alliance Data and PayPal have agreed to new product delivery channels to support growth strategies for both companies.

Alliance Data, a leader in the private-label credit market, will enable retail clients to add their private label cards to PayPal wallets. PayPal will bring Alliance Data on as an issuer of its Bill Me Later credit product. This new alliance further illustrates the reemergence of consumer credit in the U.S. economy and its importance to retailers as they face more conservative consumer spending patterns.

A company placing its private label card in a highly mature online wallet such as PayPal could arguably help to boost conversion rates and keep consumers using the card regardless of transaction type. With PayPal broadening its credit issuer base, Bill Me Later stands to gain additional transaction activity at a time when consumers are using credit more sparingly and may find a 90 days-same-as-cash program more attractive.

From the press release:

“We’re excited to work with Alliance Data Retail Services, a leader in providing highly successful branded credit programs for numerous marquee retailers, and a company whose reputation for delivering excellence makes them a great choice,” said Don Kingsborough, vice president, Retail Services at PayPal. “Offering our mutual retail clients the convenience and security of PayPal allows them to reinforce their relationships with consumers and will help them sell more.”

Click here to read more from the press release.