PayPal has rolled out PayPal Credit in the UK allowing shoppers to spread the cost of online shopping thousands of stores with PayPal.
PayPal Credit is the rebrand of Bill Me Later which eBay purchased for PayPal in 2008. Two months later Amazon dropped Bill Me Later as an option on their site.
What is PayPal Credit?
PayPal Credit is an ‘Always on’ 0% interest offer and no charges for early repayment and expands PayPal’s digital wallet making PayPal Credit, a digital alternative to plastic credit cards.
Consumers can apply directly at the PayPal website or through selected retailers to add a credit limit to their digital wallet. If approved, PayPal Credit is available straight away.
PayPal Credit also allows consumers to spread the cost of larger purchases over longer periods with monthly instalment offers at top UK online retailers – including Blacks, Samsung and Dyson.
Monthly instalment offers
Eligible customers can spread the cost of buying anything from a smartphone to a city bike, with promotional interest rates starting from 0%. Instalment offers for up to 24 months at 0% rates are offered at: Blacks; Chain Reaction Cycles; Millets; and Ultimate Outdoors and typical rates of around 14.9% are available at: Dyson; Samsung; and Simply Games.
PayPal Credit has been seamlessly integrated into the retailers’ online check-out so that consumers can see upfront how much they will pay each month. If you’re interested you complete the simple online application form and receive an instant decision at the point of purchase.
The offer periods and applicable interest rates vary by retailer.
‘Always on’ 0% interest offer
Consumers can also use their credit line as a way to pay with their PayPal digital wallet. All purchases over £150 automatically qualify for 0% interest for 4 months. This offer does not expire after one use, and applies to every purchase over £150 with PayPal Credit.
Outside of these offers, any balance is subject to the standard variable rate, which is currently 17.9% interest p.a. (variable). PayPal Credit is subject to status, available to UK residents only and other terms and conditions apply.
Cameron McLean, Managing Director of PayPal UK, commented, “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“.
We were told that PayPal Credit would be launched in the UK as far back as 2012, and it was first offered to select UK consumers as a trial in in 2014. This successful pilot has led to the product being made available nationwide.
Do sellers have to sign up to accept these credit payments?
We sell an online training course (£300) and wanted to give people the option of paying in monthly instalments (without being able to cancel).
I did look at PayPal Credit a few months ago but it wasn’t available in the UK then.
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