Paypal Credit
PayPal Pay in 3 (UK)
What it is:
A short-term buy-now-pay-later plan that lets you spread the cost of a purchase into three interest-free payments. It’s offered when you check out using PayPal.
How it works:
First payment taken at the time of purchase.
The next two monthly payments are taken automatically on the same day each month.
No interest, no set-up fees, and no late fees (if you pay on time).
Limits & eligibility:
Usually for purchases roughly between £20–£3,000 (some merchants use £30–£2,000).
Must be 18+ and a UK resident.
Eligibility is assessed per purchase and subject to PayPal checks.
Important note:
Pay in 3 is a form of unregulated credit in the UK — you have fewer protections than with regulated credit products.
A short-term buy-now-pay-later plan that lets you spread the cost of a purchase into three interest-free payments. It’s offered when you check out using PayPal.
First payment taken at the time of purchase.
The next two monthly payments are taken automatically on the same day each month.
No interest, no set-up fees, and no late fees (if you pay on time).
Usually for purchases roughly between £20–£3,000 (some merchants use £30–£2,000).
Must be 18+ and a UK resident.
Eligibility is assessed per purchase and subject to PayPal checks.
Pay in 3 is a form of unregulated credit in the UK — you have fewer protections than with regulated credit products.
PayPal Credit (UK)
What it is:
A revolving credit line you apply for once and can use repeatedly. It works like a digital credit account tied to your PayPal.
How it works:
After approval, you spend up to your credit limit on purchases through PayPal.
0% interest promotional offers often apply — for example 0% interest for 4 months on purchases of £99+ — if you meet the terms.
After the promo ends, or on transactions not covered by it, interest is charged at a standard variable rate (e.g., ~23.9% APR representative).
Key features:
You make minimum monthly payments until the balance is cleared.
The credit can be used for many purchases wherever PayPal Credit is accepted.
Regulation:
PayPal Credit in the UK is a regulated credit product, with stronger consumer protections than Pay in 3.
A revolving credit line you apply for once and can use repeatedly. It works like a digital credit account tied to your PayPal.
After approval, you spend up to your credit limit on purchases through PayPal.
0% interest promotional offers often apply — for example 0% interest for 4 months on purchases of £99+ — if you meet the terms.
After the promo ends, or on transactions not covered by it, interest is charged at a standard variable rate (e.g., ~23.9% APR representative).
You make minimum monthly payments until the balance is cleared.
The credit can be used for many purchases wherever PayPal Credit is accepted.
PayPal Credit in the UK is a regulated credit product, with stronger consumer protections than Pay in 3.