Metavante Technologies Inc. plans to offer a variety of payment services to PayPal Inc. through an alliance announced Tuesday.

Metavante said its Link2Gov Corp. is now offering PayPal's Bill Me Later service as an option for paying federal taxes or making other government payments.

PayPal's parent company, the online auction giant eBay Inc. of San Jose, Calif., bought the instant credit provider Bill Me Later Inc. in November.

Link2Gov is one of two companies authorized to process credit and debit card payments on behalf of the Internal Revenue Service. The other is Tier Technologies Inc. of Reston, Va., which operates the Web site OfficialPayments.com.

"We're hoping to do more activities with" PayPal, Frank G. D'Angelo, the group president of Metavante Payment Solutions, said in an interview Tuesday.

He cited his Milwaukee company's PIN-less debit and pay-anyone services as things PayPal might consider offering to its customers, but he said he could not discuss any plans beyond the Link2Gov announcement.

Metavante has added Bill Me Later as a payment option on Link2Gov's Pay1040.com site.

Link2Gov also will offer a Bill Me Later option, along with the credit and debit card-based and electronic check payment offerings, to other government agencies, including state and local ones.

The arrangement makes Bill Me Later credit an option for businesses making quarterly tax payments online — another mainstay of the Link2Gov service.

D'Angelo said Metavante is not involved in managing the credit risk for people using Bill Me Later's deferred payment service.

"We do the processing, but when you sign up at the Web site, you become a Bill Me Later customer," he said. The risk is "between Bill Me Later and the customer."

Metavante bought Link2Gov in 2005. D'Angelo said the unit's business is continuing to grow. However, he would not provide details about its transaction volume, including how much is made up of income, payroll or other taxes and fees to federal, state and local agencies.

"Link2Gov is becoming more of a product name than a business unit," he said. "We use a lot of the same back-office activities that we use for our other services, debit, merchant processing and credit card services."