How does PayPal Credit work?

PayPal Credit is like a credit card, but without the plastic. It’s a credit limit that’s attached to your PayPal account, which you can use to spread the cost of your online purchases. There’s no annual fee for a PayPal Credit account.

How does the 0% for 4 months offer work?

0% interest for 4 months is available on single transactions of £99 or more. This means when you spend more than £99 in one shopping basket, you’ll benefit from the offer and won’t be charged any interest on that transaction for 4 months after purchase. This applies automatically to any purchase made using PayPal Credit in excess of this value, except those to which another promotional offer (such as an instalment offer) applies. You can use this offer as many times as you like as long as you have an available credit limit and your account is in good standing. During the 4 months’ offer period, the 0% balance is included in calculating your monthly repayments. You must make your minimum monthly payment or your 0% offer may be removed. Any remaining balance due after the offer period or any transactions under £99 will be charged interest at your standard variable rate. Please see the Credit Agreement for more details.

How do PayPal Credit instalment offers work?

With selected merchants, when you check out with PayPal Credit, you’ll be shown a selection of instalment offers which enable you to spread the cost of your purchase across a number of repayments. These instalment offers vary by merchant and allow you to choose a set monthly repayment over a period from 6 to 48 months to help spread the cost of larger purchases in a more manageable way. Instalment offers will always have an interest rate lower than your standard variable rate, and many merchants offer 0% instalments with PayPal Credit. If you already have PayPal Credit, you can take advantage of these offers without having to reapply as long as you have enough available credit limit. It is important that you think about whether you can afford the monthly repayment for any instalment offer. This will be included in your monthly minimum repayment amount and will need to be paid each month. If you fail to make repayments or in certain other circumstances, PayPal may remove your offer and any outstanding amount will be charged at your standard variable rate. Please see the Credit Agreement for more details.

Find your answers you’re looking for in our PayPal Credit FAQ.

Make a payment by calling customer service

You can also make a payment by calling PayPal Customer Service, 0800 368 7155. They’re able to accept payment via any debit card – even those not linked to your PayPal account (as long as it’s a card in your name).

Make a payment by post

To make a payment by post, use the payment address provided on your billing statement. Please include your email address written on the back of the cheque and please note, cheques take 21 days to clear from the day they’re received.

What happens if I schedule a future payment?

If you’ve scheduled a future payment, you’ll receive a payment reminder 5 days beforehand. Payments are credited to your PayPal account as of the scheduled date and will be applied to your available credit once completed, which is usually within one business day.

What is the quickest way to make a payment?

It may take several more days for bank funded payments (such as BACS) to leave your account. The quickest way to make a manual payment is through your debit card.

How long does it take for payments to reflect on my account?

Payments will reflect on your PayPal Credit account on the same day as you make them, however, they will show as pending. It can take up to 5 working days for the funds to leave your bank account and be applied to your PayPal Credit account.

How are repayments allocated?

While you cannot select which purchases to pay off first, our system is designed to automatically apply your repayments to purchases with the highest interest rate first whilst also ensuring that any instalment offer plans are repaid within the term of the plan. This is to your advantage as it means you pay less interest overall across all of your PayPal purchases. Assuming you are up to date with your repayments from previous billing periods, we apply your payment first toward the minimum amount due in your statement and then any additional amount left is allocated as follows: Toward any monthly payment due on an instalment plan. If you have more than one instalment offer plan, our system will repay the plan with the highest interest rate first followed by the plan(s) at a lower interest rate(s); then Toward balances that are subject to the standard variable interest rate (interest and fees on your statement are paid off before any principal); then Toward any promotional offer balance: this could be your 0% p.a. interest for 4 months on purchases over £99, that is yet to expire or the balance of an instalment plan; then Toward any other balances shown on your statement. If you have two or more instalment plans with the same interest rate or two or more promotional offers (for example two 0% p.a. interest for 4 months purchases, one expiring in June and one in September) repayments are allocated based on the expiry date, with the soonest to expire being repaid first. Example: On your May statement, you have a balance of £750 which comprises the following purchases: Sunglasses- £100 @ 0% p.a. for 4 months expiring on 30th June (Promotional Offer 1) Camera- £250 @ 9.9% p.a. for 12 months expiring 30th October (Instalment Plan 1) Watch- £400 @ 0% p.a. for 4 months expiring on 30th July (Promotional Offer 2) £0 balance at standard variable rate The minimum payment due assuming no interest or charges have been applied is £32.90. This is the Instalment Plan 1 monthly amount due plus 2% of each Promotional Offer balance. You decide to pay £100, which is more than the minimum payment due but less than the full balance. From your £100 payment, £32.90 is allocated to the minimum due payment, which leaves £67.10 to be allocated to the above balances as explained here: Entire £67.10 allocated to Instalment Plan 1 (the camera at 9.9% p.a.). This is because any amount in excess of the minimum monthly payment due is used to repay that remaining instalment balance. This will NOT reduce monthly instalments due going forward but will shorten the duration of your plan so that it will end sooner. If the balance owed on the camera was £250, we would allocate £22.90 plus £67.10 toward repaying this, resulting in the balance the following month being reduced to £160. You would still be required to make a repayment toward the camera purchase in the following month but the instalment plan would end earlier than 30th October. £0 toward your standard variable rate balance as you are not repaying a standard balance for this statement period. A standard balance is made up of standard purchases of goods and services you make using PayPal Credit that are not promotional balances. A balance of £80 for the purchase of clothes does not qualify for a promotional offer of 0% (less than £99) or an instalment plan so this is a standard variable rate balance. £0 toward your Promotional Offer 1 (sunglasses) £0 toward your Promotional Offer 2 (watch) NOTE: Purchases on a 0% p.a. for 4 months promotion will only be paid down in the event there are no Instalment Plans or standard variable rate balances on your account.

What if I have two offers with the same interest rate? Which one will the repayment apply to?

If you have two offers with the same interest rate (for example, two 0% for 4 months offers or two instalment plans at the same interest rate) repayments are allocated based on the expiry date, with the soonest to expire being repaid first.

PayPal Credit

Q: What happens if I don’t have enough money in my account?

We’ll never take more than your last statement balance or less than the minimum amount due, even if you specify otherwise. Please make sure you have enough money in your account to cover your payment. If your payment doesn’t go through due to insufficient funds in your chosen account, you’ll be charged a returned payment fee of £12.

Getting the most from PayPal Credit.

Learn how to make payments, set up a Direct Debit and manage your account—both on the app and online.

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Why use PayPal Credit?

Available in your PayPal wallet

PayPal Credit is available to use in your PayPal wallet and accepted at thousands of online stores.

0% interest again and again

Get 0% interest for four months each time you spend £99 or more.¹

Pay with confidence

PayPal works hard to keep your transaction secure. Plus, you’ll get Buyer Protection on eligible purchases. Time limits and other terms apply.²

PayPal Credit is a regulated credit product and gives you a credit limit which can be used for promotional offers. During the 4 months’ offer period you must make your minimum monthly payment or your 0% offer may be removed. Any remaining balance due after the offer period or any transactions under £99 will be charged interest at your standard variable rate.

Representative Example

Representative Example
Representative	Purchase interest rate	Assumed credit limit
23.9 % APR (variable)	23.9 % p.a. (variable)	£1,200

Representative

23.9 %

APR (variable)

Purchase interest rate

23.9 %

p.a. (variable)

Assumed credit limit

£1,200

Your actual interest rate and credit limit may vary depending on your individual circumstances.

Subject to status. Terms and conditions apply. UK residents only.

Built to give you more points

PayPal+ the loyalty programme that is built to give you more points in more ways.³ Use them just about anywhere you shop. And it’s all for free with no caps. Shop wherever Mastercard is accepted with PayPal Credit and earn a point for every £10 spent.

Get PayPal+ for Free More About PayPal+

PayPal+ Terms and conditions apply

How PayPal Credit works.

You can see everything related to your PayPal Credit account by logging into the PayPal app (recommended), or your online account, and selecting PayPal Credit. From there, you’ll find your account summary, your minimum payment due and available credit, as well as your payment options and statements.

How to Manage Your Account

Learn how to check your current balance, download statements, and so much more.

How to Make a Payment

Discover how simple it is to make a manual payment with PayPal Credit.

For more guidance on managing your budget, visit Spend Smarter. If you need further support or are struggling to make your monthly payments, please visit our Help Centre or call PayPal Credit customer service team on 0800 368 7155 and we will do our best to help you.

Three ways to use PayPal Credit

PayPal Credit gives you a credit line in your PayPal wallet for online purchases, along with a physical credit card you can use for spending offline if you choose to apply for one.⁴ With access to promotional offers or your standard variable rate.

0% interest offer

Automatically receive 0% interest over 4 months on every purchase £99 or more, again and again.

Pay in instalments

Selected retailers offer instalment plans from 6 to 48 months so you can spread the cost for longer.

Everyday buys

PayPal Credit is accepted at millions of online shops. For purchases under £99, your standard variable rate applies. You can find your standard variable rate in your credit agreement.

How to make

a payment

There are many ways to make a payment on your PayPal Credit account. Your first statement will arrive within 35 days of your first purchase and will include your payment due date.

These are the most common ways to pay and recommend setting up a Direct Debit so you never miss a payment. We will charge a fee of £12 if your payment is late or missed. We also report missed payments to the Credit Reference Agencies which will impact your credit score.

Direct Debit Manual Payment Payment Allocation

Setting up a Direct Debit

On the app or online

Log into your account

Once logged in, click on ‘Set up Direct Debit.’ You can use a bank account in your PayPal wallet to set up a Direct Debit.

Add a bank account

If you don’t have a bank account in your PayPal wallet, you’ll need to add it first. Please note, Direct Debit authorisation will need to be completed before you can set one up, and that can take a few days.

Confirm your payment method

If you have a bank account in your wallet already, you’re set to confirm your payment method and choose the amount you’d like to pay. Once confirmed, you’ll see when your first Direct Debit payment is due, alongside your current balance and available credit.

Receive a confirmation

You’ll receive an email confirmation and ongoing notifications 15 days ahead of each Direct Debit payment to help you keep on top of it.

Please note: Payments may take several days to leave your bank account from the date requested for your Direct Debit. Ensure you have enough money in your account to cover your Direct Debit payment. If your payment doesn’t go through due to insufficient funds in your bank account, you’ll be charged a returned payment fee of £12.

Set up Direct Debit

Making a manual payment

The recommended way to keep on top of your PayPal Credit account is to set up a Direct Debit. But if you prefer to make a manual payment, it’s simple to do online, on the app, by phone, by post or by contacting our customer service team.

Choose how much to pay

Choose your payment method

Confirm and pay

Other ways to pay.

Need more information?

Payment Allocation

When you make a payment, you're not able to select which purchases are paid off first. However, it will automatically apply to purchases with the highest interest rate first, while ensuring any instalment offers are repaid within the term of the plan.

How does it work?

While you cannot select which purchases to pay off first, our system is designed to automatically apply your repayments to purchases with the highest interest rate first whilst also ensuring that any instalment offer plans are repaid within the term of the plan. This is to your advantage as it means you pay less interest overall across all of your PayPal purchases.

Assuming you are up to date with your repayments from previous billing periods, we apply your payment first toward the minimum amount due in your statement and then any additional amount left is allocated as follows:

Toward any monthly payment due on an instalment plan. If you have more than one instalment offer plan, our system will repay the plan with the highest interest rate first followed by the plan(s) at a lower interest rate(s); then
Toward balances that are subject to the standard variable interest rate (interest and fees on your statement are paid off before any principal); then
Toward any promotional offer balance: this could be your 0% p.a. interest for 4 months on purchases over £99, that is yet to expire or the balance of an instalment plan; then
Toward any other balances shown on your statement.

If you have two or more instalment plans with the same interest rate or two or more promotional offers (for example two 0% p.a. interest for 4 months purchases, one expiring in June and one in September) repayments are allocated based on the expiry date, with the soonest to expire being repaid first.

Example:

On your May statement, you have a balance of £750 which comprises the following purchases:

Sunglasses- £100 @ 0% p.a. for 4 months expiring on 30th June (Promotional Offer 1)
Camera- £250 @ 9.9% p.a. for 12 months expiring 30th October (Instalment Plan 1)
Watch- £400 @ 0% p.a. for 4 months expiring on 30th July (Promotional Offer 2)
£0 balance at standard variable rate

The minimum payment due assuming no interest or charges have been applied is £32.90. This is the Instalment Plan 1 monthly amount due plus 2% of each Promotional Offer balance.

You decide to pay £100, which is more than the minimum payment due but less than the full balance. From your £100 payment, £32.90 is allocated to the minimum due payment, which leaves £67.10 to be allocated to the above balances as explained here:

Entire £67.10 allocated to Instalment Plan 1 (the camera at 9.9% p.a.). This is because any amount in excess of the minimum monthly payment due is used to repay that remaining instalment balance. This will NOT reduce monthly instalments due going forward but will shorten the duration of your plan so that it will end sooner.
If the balance owed on the camera was £250, we would allocate £22.90 plus £67.10 toward repaying this, resulting in the balance the following month being reduced to £160. You would still be required to make a repayment toward the camera purchase in the following month but the instalment plan would end earlier than 30th October.
£0 toward your standard variable rate balance as you are not repaying a standard balance for this statement period. A standard balance is made up of standard purchases of goods and services you make using PayPal Credit that are not promotional balances.
A balance of £80 for the purchase of clothes does not qualify for a promotional offer of 0% (less than £99) or an instalment plan so this is a standard variable rate balance.
£0 toward your Promotional Offer 1 (sunglasses)
£0 toward your Promotional Offer 2 (watch)

NOTE: Purchases on a 0% p.a. for 4 months promotion will only be paid down in the event there are no Instalment Plans or standard variable rate balances on your account.

For more information on how your payment is allocated please see our FAQ’s page.

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