If you configure your primary payment gateway as paypal standard then the cart skips step 2 of the checkout where the user enters their credit card since they are taken to paypal to enter their credit card. So the bill me later option will not work when you have paypal standard as the primary gateway However, there is a solution!
- Set your primary gateway as "Manual"
- Choose one of the payment methods: Check, telephone and/or Cash on Delivery (COD)
- Select the Paypal standard checkout option under payment methods
Configuring the payment settings this way will let the user get to step 2 of the checkout and they will be presented with the option to pay later using one of the manual payment methods (Check, telephone, COD) or pay using paypall standard.
-Scott