Two online merchants have expanded their use of PayPal Inc.'s services and a third, Blockbuster Inc., has agreed to accept consumer payments through PayPal.

The San Jose subsidiary of the Internet auction company eBay Inc. said Wednesday that Overstock.com is now offering customers the option of using PayPal's Pay Later service, which offers instant credit to users, who have up to 90 days to pay for purchases. Overstock.com, of Salt Lake City, already offers PayPal's standard electronic payment service.

On Tuesday, Click Sales Inc., a provider of digital products and services, said it would accept PayPal for recurring billing. About 20% of the Boise, Idaho, company's sales are made through PayPal; allowing customers to use PayPal for subscription-based services would increase this type of sale, it said.

Also Tuesday, Blockbuster said it has begun accepting PayPal for online purchases. The Dallas company said that people can use PayPal now to pay for its movie rental subscription service but that it plans to offer it eventually for all online transactions, including purchasing DVDs, funding gift cards, and renting or purchasing movies on demand, a service it plans to start offering this summer

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