Posted on April 14, 2016 by staff

PayPal Credit arrives in UK with limited 0% interest


PayPal is now offering a credit service in the UK with 0% interest on purchases over £150.

PayPal Credit is expanding into its first market outside the US as it seeks to grow its international business.

If approved on PayPal’s site, consumers can use their PayPal accounts to spread out online payments for goods where they may have previously used credit cards.

The 0% interest rate is available for four months before reverting to the standard variable rate, which is currently 17.9% p.a., according to PayPal.

“Today’s announcement is another example of how PayPal is so much more than a button on a website,” said PayPal UK managing director Cameron McLean.

“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

“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 company has also agreed special rates for customers over a longer period with a select band of retailers including Blacks, Chain Reaction Cycles, Dyson, Millets, Samsung, Simply Games and Ultimate Outdoors.

There are no plans to introduce a physical credit card or money transfer service, unlike in the US.

A PayPal Credit pilot has run in the UK since 2014, when the American operation was also set up.

PayPal was a subsidiary of eBay until last year and is now an independent company.