For a very long time was speculated that giant payments conglomerate Paypal was entering the credit market for a selective section of their users, PayPal Credit is exactly that.
We know the product was developed by BillMeLater a company belonging to the Paypal group, that specialized in a form of delayed money collection for purchased services and products. And the Comenity Bank which is a specialized card issuer for big brand retailers in the US.
How does PayPal Credit work?
Check out with PayPal and then choose PayPal Credit.
Answer 2 quick questions and accept the terms.
You’ll know within seconds if you are approved.
Look for your PayPal Credit statement via email.
Basically acts on the most classic way of credit card schemes.
Paypal is offering certain promos to attract a user base such as No Interest in 6 months. which basically provides an incentive for quick repayments for selected vendors and users.
The Annual Percentage Rate for standard purchases and cash advances on a PayPal Credit line is 19.99%, although some special offers have a lower, promotional APR. The Minimum Interest Charge is $2.00. Of course, you can choose to pay your entire balance by the payment due date to avoid interest charges
Although the process may be a bit buggy, the overall entry to credit (loans) market is a step for PayPal.
When you link PayPal Credit to your PayPal account, all credit history will automatically transfer over. The linking process is what will enable statements, transactions, account history and profile information to be displayed on PayPal.com. However, for security reasons, funding sources associated with your PayPal Credit account will not automatically transfer over PayPal.com. You will need to manually establish or update any links from financial institutions (such as your bank accounts) to PayPal Credit. We recognize this poses a minor inconvenience for customers, but for security reasons this information will not automatically transfer.