PayPal has expanded its credit-based service to the UK.
As an incentive for new customers, PayPal Credit offers zero percent interest on purchases of £150 or more for the first four months, after which its standard variable interest rate – currently 17.9 percent – will apply. It’s also reportedly working with merchants Blacks, Dyson, Millets, and Samsung to come up with further special interest rate plans, though specifics on those aren’t yet available.
The service’s UK debut complements its presence in the US, where it launched in 2014. It works in much the same way as any standard credit card service, with customers required to fill out an application that, once approved, will result in a new credit limit available for PayPal purchases.
The move further expands the company’s reach in the digital payments sector, which also includes efforts to make headway in the area of mobile payments. There, PayPal has faced competition from major mPayment platforms such as Apple Pay, which in turn is increasingly trying to encroach on PayPal’s traditional territory of online payments. Of course, no other major mPayment platform is currently offering credit services, so in this area PayPal has a leg up, for now.
Sources: TechCrunch, TechRadar