PayPal Credit will lend you money for online shopping in the UK
LONDON -- Another challenger to traditional credit cards has emerged in the UK with the introduction of PayPal Credit, a way to spread out payments for online purchases.
The payments giant will allow consumers to apply for credit, under which purchases of £150 ($212) or more will be interest-free for four months, then subject to the standard variable interest rate, which is currently 17.9%. Limits will be set person by person.
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Some retailers, such as Blacks, Dyson and Samsung, have their own individual instalment offers with PayPal Credit.
“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," Cameron McLean, managing director of PayPal UK, said in a statement sent to Mashable.
Customers can apply online for the program, and the company says the process should take about 10 minutes and includes a credit check. It's available straight away if approved, and you can sign up for payment reminders in stay on track.
Since PayPal's split from eBay last year, the company has been expanding its products and services internationally. In the UK it faces competition from cashless payment alternatives Apple Pay and, in the next few months, Android Pay.
The UK is reportedly PayPal's second largest market outside the U.S., according to analysts. The company wouldn't confirm this but said PayPal has 179 million active customer accounts globally, of which 22 million are in the UK.
"Appealing to retailers is important in an increasingly crowded online payments sphere."
PayPal Credit is a separate program from Bill Me Later in the U.S. It was trialled with a small group in the UK in 2014; the company said the program hasn't been largely available until now because they phase the introduction of new products for the best experience.
PayPal Credit is trying to appeal to consumers, but appealing to retailers is also important in an increasingly crowded online payments sphere.
Larger retailers, such as John Lewis, may have their own instalment or credit plans. Amazon offers the Pay Monthly plan through its shopfront.
"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," PayPal's McLean said.
UPDATE: April 14, 2016, 1:56 p.m. BST
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Liza Hearon was the Deputy Editor for Mashable UK. Liza started her career in journalism writing about punk bands for a 'zine in Florida, and her wanderlust has led her to work for news organisations in Russia, Japan and now London. Prior to joining Mashable, she was the European homepage editor for the Wall Street Journal. Liza loves podcasts, karaoke and really, really spicy food.
