About PayPal Credit

Frequently asked questions

Join the millions around the world who love PayPal

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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

Protected payments

Every purchase is protected by PayPal’s 24/7 security and encryption. Plus, you’ll get Buyer Protection on eligible purchases. Time limits and other terms apply.

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.

Representative Example

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


23.9 %
APR (variable)

Purchase interest rate

23.9 %
p.a. (variable)

Assumed credit limit

Your actual interest rate and credit limit may vary depending on your individual circumstances.
Subject to status. Terms and conditions apply. UK residents only.

Managing your account

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.

If you need further support are struggling to make your monthly payments, please visit our FAQs for more information 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

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.

Here we’ve outlined 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.

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.

How do you want to pay?

Make a single payment from your PayPal balance, bank account or debit card at any time, or schedule future one-off payments from your bank account or debit card. You cannot use a credit card to repay PayPal Credit.

Choose how much to pay

Login into your PayPal account, online or on the app. You can pay off your minimum payment, statement balance, current balance or enter another amount.

Choose your payment method

Select your preferred payment method and select either ‘Today’ or enter a future date.

Confirm and pay

Other ways to pay

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.

Need more information?

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.

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.

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?

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.


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:

  1. 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.
  2. £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.
  3. £0 toward your Promotional Offer 1 (sunglasses)
  4. £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.

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

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.