Paypal Credit passes £2bn of UK lending

The technology giant has seen an uptick in growth in its consumer loans financing business in the UK.

PayPal Credit, which funds point of sale financing for UK retailers online, has passed £2bn of lending.

The service allows businesses to offer customers instalment payments on larger purchases and has clocked up 1.5m user accounts in the UK.

PayPal says its own research shows that UK retailers incorporating PayPal Credit into their online checkout have seen a 15 per cent average incremental increase in sales. 

PayPal Credit launched in the UK in 2014. Users sign up to an online credit limit linked to their PayPal account, which can only be used with firms accepting PayPal as a method of payment.

Retailers, including Dell, Voxi, Box Ltd, Watches of Switzerland, Goldsmiths and Mappin & Webb, also offer instalments with PayPal Credit. 

Darrell Esch, Senior Vice President, Credit at PayPal, said: “Since we launched PayPal Credit in the UK we’ve seen a wide range of retailers adding it into their payment offer – giving customers greater choice at checkout.

“PayPal Credit is like a credit card without the plastic, which consumers can use online. This has made it easier for consumers to manage spending, spreading the cost of larger purchases and helping them buy the goods they really want.”