NO, you are not using Paypal, Bill Me Later will approve your request and send you monthly statements until paid in full. When you go to pay any Ebay auctions you have won, you click on pay now and directed to Paypal. where you have the option to use Paypal or Bill me later, Paypal pays the seller immediately, if you select Paypal or bill me later to pay. What happens if you want to pay later, Bill me later will basically do a credit check on you, which is done almost immediately, You have to give the same information you would give any credit card company when opening an account.