PayPal has officially launched its PayPal Credit service in the UK, bringing a fast and efficient way to buy things online. We explain how it works and how to send PayPal Money?


PayPal Credit (formerly called “PayPal Bill Me Later”) is a virtual credit card. It was originally launched in 2008 but was rebranded into its current form in 2015. The service is paperless, card-less, and built directly into your PayPal wallet.

The integration with your PayPal wallet means you can manage your payments, view your balance, and check your statements through your existing login.


Two other services PayPal Extras MasterCard and PayPal Smart Connect Card fall under the PayPal Credit umbrella. However, they offer a physical card so will not form part of this rundown. Learn more about the pros and cons.


PayPal, one of the world’s largest internet payment services, recently announced that its PayPal Credit feature is now available in the UK. This simple addition to a standard account allows users to purchase items on interest-free credit for up to four months. We’ll show you how to set up and use PayPal Credit so that you can buy that shiny new smartphone, laptop, or tablet that you’ve had your eye on. See also: How to stay safe shopping online

How to use PayPal Credit: Applying for the service?

As this is a credit service like any other, you’ll need to apply to PayPal and be approved before you can start spending. Of course, you’ll need to be an existing PayPal customer, so if you haven’t already set up an account just visit www.paypal.co.uk and sign up for free, and see our How to get started with PayPal guide.


To begin the PayPal Credit process head over to www.paypal.co.uk/credit where you’ll find a large blue Apply Now button. Clicking this will take you through the various forms required to open a credit account, and PayPal says that this takes less than ten minutes and you’ll be given the decision immediately.


To qualify for PayPal Credit you’ll need to meet the following criteria;

• Be a UK resident aged 18 years or older
• Not currently declared bankrupt
• Have a good credit history
• Have an income greater than £7,500 per year

Once the forms are completed and you’ve been approved you can begin to use the service

How to use PayPal Credit: Benefits and costs.

On any purchase with a total value of £150 or more, you’ll receive four months of interest-free credit. If you pay the balance off during this time then you’ll have no additional costs. Any outstanding amounts at the end of the four months will be charged at a variable rate of interest, with PayPal indicating that this is usually around 18 percent APR.


PayPal Credit has an assumed limit of £1200, there are no yearly fees, and the only running cost is a £12 fine for late payments. To avoid this PayPal recommends the user sets up a monthly direct debit to service the outstanding bill. No plastic card or PIN number will be issued, instead, PayPal Credit is a totally digital service that uses your phone, tablet, or PC to manage the account.

How to use PayPal Credit: Making purchases

Now that PayPal Credit is up and running all you need to do is visit a site that accepts PayPal as a method of payment, which is quite a lot of them, then when you get to the Checkout select PayPal, log into your account and then select PayPal Credit. That’s it. The items will be charged to your PayPal Credit account rather than your standard PayPal one, and you’ll have four months to pay it off before the interest kicks in.

How to Earn Paypal Cashback With Mastercard

Earn Cash Rewards every time you buy  all while enjoying No Annual Fee. Simply shop, earn and redeem free gift card on PayPrizes.com. You must have an account with PayPal in order to apply for a PayPal Cashback Mastercard account. When you click Apply Now, you will be prompted to log in to PayPal.

PayPal Cashback Mastercard is a cashback credit card issued by PayPal Inc. This card is designed for people with good credit. The minimum credit score to apply is 720. If you're wondering whether PayPal Cashback Mastercard is the right card for you, read on. This is everything you need to know to make a good choice.

Finding a credit card that offers an unlimited 2% back or more on everything you buy is rare in the industry, but PayPal has one of the few offerings the PayPal Cashback Mastercard, issued by Synchrony Bank.

High flat-rate cash-back cards are enticing because they have the ideal combination of being simple and rewarding. No fussing with different rewards for different purchases or activating reward categories every quarter. And this one is free to carry, with an annual fee of $0.

You can use the card anywhere Mastercard is accepted, but the catch is you must have a PayPal account to apply. Applying is free, but it’s a potential hassle for people who have no interest in using the PayPal electronic payment service.

What are PayPal Cashback Mastercard Basics and benefits.

1. Card type: Cash back.
2. Annual fee: $0.
3. Rewards: Unlimited 2% cash back on purchases.
4. Sign-up bonus: None.
5. Foreign transaction fee: None.
6. APR: The ongoing APR is 22.24% - 29.24% Variable.

Getting an unlimited 2% cash back on everything is simple and valuable, especially when the industry standard for flat-rate cards is 1.5% back.

Other cards offer higher cash-back rates on certain types of spending, but very few have higher rates on all spending, especially with an annual fee of $0. There’s value in not having to devote mindspace to your credit card’s reward categories. Just using this card for everything is a fine plan.

In most cases, once you're approved for this card, a temporary credit line will instantly be added to your account and you can start using it on PayPal immediately you don't have to wait for a physical card to arrive in the mail.

What are PayPal Cashback Mastercard Drawbacks?

This card is exclusive to PayPal members. When you click "Apply Now", you will be prompted to log in to PayPal. If you don’t have an account with PayPal, you will need to open one to apply. It's free.

REDEMPTION IS SLIGHTLY LIMITED

You have two choices for getting your cash back:

• Redeem it as a deposit into your PayPal Cash or PayPal Cash Plus account.
• Redeem it to your bank account or debit card linked to your PayPal account.
• This might not be a big deal for some people, but it’s more limited than other cash-back cards that allow you to apply cash back as a statement credit or get a paper check in the mail.

NO SIGN-UP BONUS OR INTRO APR RATE

While the ongoing rewards rate is superior to most flat-rate cards, this card doesn’t give you a head start on accumulating cash rewards, unlike other options. It also doesn’t entice you with an introductory rate on balance transfers or purchases.

BELOW-AVERAGE ISSUER

Synchrony Bank, the issuer of the PayPal Cashback Mastercard, gets below-average ratings for customer satisfaction as measured by JD Power.

In 2018, it ranked second-to-last among several major credit card issuers. This may or may not matter to you, depending on how often you typically interact with your credit card issuers.

HIGH ONGOING APR

If you’ll carry a balance monthly and pay interest, a rewards card like this might not be for you anyway. A low-interest or 0% APR credit card might work better. But it’s notable that APRs for this card trend higher than other cash back cards.

The issuer notes that your APR, like with most issuers, is based on your creditworthiness and other factors and varies based on the prime rate. The ongoing APR is 22.24% - 29.24% Variable.


How to apply for PayPal Cashback Mastercard?

Fill in the application form. You will typically need to provide general financial information, such as your Social Security Number, address, annual income, and source of employment.

Check the information is accurate and submit your application. If you're denied click here to find out why your application may have been rejected and what you can do about it. If your credit score is preventing you from qualifying for this credit card, check out our guide for the best credit cards for bad credit.

Purchases subject to credit approval. See Rewards Program Terms for details. To earn Cash Rewards, you must have an open PayPal Account in good standing to which your Card Account is linked. If your PayPal Account is closed for any reason, or if your Card Account is no longer linked to your PayPal Account, your Card Account will be closed and any Cash Rewards earned from couponprizes.com, but not redeemed, will be forfeited.

Important information on redeeming Cash Rewards to your PayPal balance: You need to have a PayPal Cash or PayPal Cash Plus account to have a balance. If you do not have one of those accounts, you can only transfer your Cash Rewards to your bank account or debit card linked to your PayPal account.

The PayPal Cashback Mastercard is issued by Synchrony Bank pursuant to a license by Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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