About PayPal Pay LaterUpdated an hour ago

What is PayPal Pay Later & How to Use It Responsibly

To help you shop with confidence and manage your budget on your own terms, we partner with PayPal to offer PayPal Pay Later options at checkout. 

These services allow you to spread the cost of your purchases. However, because both PayPal Pay in 3 and PayPal Credit are credit agreements, it is vital to understand your financial responsibilities before completing your order. 

Spreading the cost of a purchase should always be done mindfully and within your financial means.  

Your PayPal Pay Later Options

Depending on your basket size and budget, you will see two main options when checking out with PayPal:

• PayPal Pay in 3: Splits your purchase of £20 to £3,000 into three equal payments. The first is taken at checkout, followed by payments in Months 2 and 3. 0% Interest. No setup or late fees.
• PayPal Credit: Like a digital credit card attached to your PayPal account. Get 0% interest for 4 months on any purchase of £99 or more. 0% Interest for 4 months. (Standard variable APR applies to remaining balances; £12 late fees apply).

Step-by-Step Checkout Guide

Checking out is secure and simple, but we always encourage checking your budget before applying:

1. Select PayPal at checkout

Add your items to your basket, proceed to checkout, and select PayPal as your payment method.

2. Choose 'Pay Later'

Once the secure PayPal portal opens and you log in, select the Pay Later tab.

3. Select Pay in 3 or PayPal Credit

Depending on your basket size, choose Pay in 3 or apply for a PayPal Credit limit. PayPal will run a rapid eligibility assessment.

4. Confirm and place your order

Review your payment schedule and disclosures, confirm the agreement, and complete your purchase. 

5. Order complete

Your order will be placed immediately, once the above steps have been successfully completed. You will receive a confirmation email of your orders details and shipping timeline.

Essential Disclosures & Warnings

1. Credit File & Future Borrowing Impact

When you apply, PayPal may carry out a "soft" credit check. While this initial search does not affect your credit score, PayPal shares your repayment history with credit reference agencies. Missing payments can severely damage your credit history, making it significantly harder or more expensive to successfully apply for future credit (such as mortgages or car loans).  

2. Fees & Interest

• Pay in 3: Has 0% interest and no late fees.
• PayPal Credit: Offers 0% interest for 4 months on spends over £99. However, if you do not pay off the balance within 4 months, a standard variable interest rate (typically 23.9% APR) is charged on the remaining amount. Additionally, late payments on PayPal Credit incur a £12 late fee.

Important Regulatory Risk Warning

Spreading the cost of your purchases can be a helpful way to manage your budget, but borrowing more than you can afford could seriously affect your financial status. Please make sure you can comfortably afford your monthly repayments on time.

PayPal Pay Later (including Pay in 3 and PayPal Credit) are credit agreements. Decisions to lend are subject to status and approval. Using credit options can make borrowing less accessible or more expensive for you in the future. Missing a repayment will result in PayPal reporting this to credit reference agencies, which will negatively impact your credit file. 18+, UK residents only. Terms and conditions apply.  

What to Do If You Are Struggling

If your financial circumstances change unexpectedly and you are worried about meeting a payment deadline, contact PayPal. Reach out to PayPal's customer support through their app or online help center immediately. Under FCA guidelines, they are required to support you and help explore manageable repayment paths. 

For independent advice, you can get completely free, confidential debt advice and financial budgeting guidance from MoneyHelper or StepChange.

Here is PayPal's Support Centre 👉 https://www.paypal.com/uk/cshelp/contact-us