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PayPal brings its virtual credit card to the UK with an interest-free offer

PayPal is, in many ways, the primary choice for making online payments. The company is keen to build on this and has launched a new product in the UK to widen its appeal. PayPal Credit is a virtual credit card that can be used online, and as an incentive to sign up, there’s a four-month interest-free offer.

As this is an online credit card, applying for it takes a matter of moments, and PayPal is quick to point out that there’s no hanging around waiting for a card and PIN to arrive. Apply online and you could be approved for a credit extension to your PayPal account.

Just as with any other form of credit card, making an application for PayPal Credit involves a credit check – something to keep in mind if you’re concerned about your credit score. Once signed up, you’ll be able to make purchases via PayPal even if you don’t have funds in your linked bank account, or if you just fancy the idea of spreading the cost of a larger purchase.

PayPal describes the new virtual card: “PayPal Credit is like a credit card you can use for your online purchases, it takes minutes to apply and if you’re approved you’ll have a credit limit in your PayPal account right away.”
The interest-free offer is… interesting. PayPal bills it as “0 per cent for 4 months to use again and again”, going on to explain that “every time you spend £150 or more in one go using PayPal Credit, you’ll get 0 per cent interest for 4 months on that purchase”. After four months – and for purchases over £150 – the interest rate jumps to a fairly standard 17.9 per cent p.a (variable).
If you want to apply for a virtual card, head over to the PayPal Credit website.


ITProPortal. 2016. PayPal brings its virtual credit card to the UK with an interest-free offer | [ONLINE] Available at: [Accessed 28 April 2016].


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PayPal Credit Takes On Card Companies With Zero Percent Interest

The company has today launched its PayPal Credit service in the UK, offering customers a quicker way to pay at hundreds of thousands of online stores either as a one-off or as part of their existing digital wallet.

The service is open to existing and new PayPal account holders, who can apply via the company’s website or through selected retailers, with the service immediately available to successful applicants.


Where PayPal Credit might have the edge over its competitors is in automatically offering zero percent interest for the first four months (excluding instalments) on all purchases over £150 made with the service. However any balance outside of this will be subject to the standard variable rate, which is currently 17.9 percent interest p.a.

paypal credit

Customers can also view their purchases and manage their account any time online, in the PayPal app or over the phone, and there’s even the flexibility to spread the cost with an offer, or even repay early with no additional charges.

PayPal says it has already signed up the likes of Samsung, Dyson and Millets to enable monthly payment instalments, with the service built into existing online check-out, allowing users to see upfront how much they will pay each month; complete the simple application form in minutes; and receive an instant decision at the point of purchase.

“Today’s announcement is another example of how PayPal is so much more than a button on a website. We are using technology to reimagine money. For consumers, it’s about giving them more choice and convenience when shopping online. For businesses, we are enabling them to grow and offer their customers greater payment flexibility,” said Cameron McLean, managing director of PayPal UK.

“It’s a sign of things to come. As a newly-independent company, we will continue to partner with retailers to find new, improved ways for people to pay.”

The launch is PayPal’s latest move into establishing itself as a central part of the end-to-end retail and payments process.

Earlier this year, it launched PayPal Commerce, which will allow businesses to show off their products in more places than ever before by letting them place ‘Buy’ buttons on social media, emails and online adverts.

Last year, the company confirmed that it was bringing its web-based One Touch for Web platform to the UK, allowing shoppers to pay for goods or services with just one tap or click – eliminating the need to enter in login information each time they reach a checkout.


PayPal Credit Takes On Card Companies With Zero Percent Interest. 2016. PayPal Credit Takes On Card Companies With Zero Percent Interest. [ONLINE] Available at: [Accessed 15 April 2016].