Dell Now Accepting PayPal

As analysts wonder whether direct marketer Dell has "jumped the shark," the computer maker announces customers can now buy merchandise online via PayPal.

Dell Computer announced today that it is now accepting payment for Dell merchandise via the popular online payment service PayPal for personal and small business customers in the United States.

PayPal, now a division of eBay, is used by over 80 million online users to accept money and pay for online purchases via credit cards, bank accounts, or PayPal account balances.

“PayPal gives consumers and small business owners more choice and convenience when doing business with Dell,” said Tom West, director of Dell home and small business marketing. “In addition to Dell financing and other forms of payment, we welcome the millions of loyal, tech-savvy PayPal users.”

Dell is still the world’s largest computer maker, but recently has been struggling to make revenue goals, last week announcing a 28 percent slump in its third-quarter earnings (owing to weaker demand in particular markets plus charges for faulty capacitors on older OptiPlex business computers and employee severance packages) following second quarter results which missing analyst expectations by $300 million. Dell is trying to offer a better-tuned selection of products and price points, and is even trying to take on trend-setter Apple Computer with hip-looking XPS “luxury” computers with bundled premium technical support services.

Accepting payment via Paypal may let Dell tap ore directly into technologically savvy online shoppers who are comfortable with online purchases and, perhaps, willing to purchase more than inexpensive, low-end systems.