As the global banking sector undergoes much change in response to the credit crunch, there have been some interesting new developments, with tech companies acting as lenders to smaller technology start ups, and now online payment companies teaming up with the big players in the retail banking sector.
PayPal, which is now world leader for online payments, has made a partnership with BNP Paribas, one of Europe’s largest retail banks. BNP issued a press release, here is an excerpt:
PayPal has incorporated BNP’s Aurore Cetelem card into its range of payment means in France, Spain and Italy. Furthermore, the two main players have initiated negotiations that may lead, at horizon 2009, to the launch of an innovative online financing offer under the “PayPal” brand name.
PayPal proposes a wide range of online payment-supply sources to its clients, buyers and retailers, adapted to the various European markets: PayPal settlement account, credit cards, bank accounts, prepaid cards, etc. PayPal, pursuing this strategy alongside its constant desire to adapt to new consumer trends, it has decided to join up with BNP Paribas Personal Finance in the online purchases’ financing sector.
“More and more European consumers are making online purchases and are using various means of payment in accordance with their type of purchase and with domestic consumer practices. Online retailers are, on their part, seeking efficient and original alternative means of payment to enable them to increase sales. The solutions for online financing, due to the financial flexibility offered, form a part of those expanding new consumer trends that PayPal should endeavour to follow.”, states Alexandre Hoffmann, General Manager for consumer financing and European partnerships for PayPal. “In this context, BNP Paribas Personal Finance, via its “Cetelem” trade mark, is not only able to share its huge online financing experience, but may also provides us with significant European coverage, a fundamental point of our considerations.”, he continues.
“BNP Paribas Personal Finance, via its “Cetelem” trade mark, is the European Number 1 of credit on the Internet, with more than 20% of its income, excluding that of sales points, being realised online. The main objective is to handle 5 billion Euro in outstanding credit via the Internet by horizon 2010 (records show 2 billion at 2007 year end). One of the keys to success implies accompanying Web retailers currently wishing to propose customers a full range of payment solutions. In this context, PayPal and BNP Paribas Personal Finance possess all the necessary assets for developing the most innovative financial offers for the attention of Internet surfers.”, states Delphine Asseraf, Manager for BNP Paribas Personal Finance Internet partnerships.
PayPal has already incorporated the Aurore Cetelem card into its range of payment means. Hence, 12 million Aurore cardholders in France, Italy and Spain are henceforth able to make easy and secure payments via PayPal, using the credit facilities of their Aurore card, on eBay and on more than 200,000 Websites worldwide, 130,000 of which in Europe.
Furthermore, the two parties have initiated negotiations that may lead, at horizon 2009, to the launch of an offer for financing purchases under the “PayPal” brand name. It should enable PayPal users to pay in several instalments and to benefit from a cash reserve for making purchases over the Internet and at sales points.
Source: http://bnpparibas-pf.com/en/espace-presse/presse/en/25092008.pdf
