In a major strategic shift, PayPal is set to directly challenge established financial players like American Express and Chase Bank in the UK with the launch of its first-ever debit and credit cards.
A New Chapter for PayPal in the UK
The digital payments giant has announced the rollout of its new PayPal+ loyalty programme, which will be free for its nearly 30 million British customers to join. Central to this initiative is the introduction of a PayPal debit card, which promises to pay users 1% cashback on every purchase with no minimum spend required to start earning.
Diego Scotti, General Manager of PayPal’s Consumer Group, stated: “This is the start of an exciting new chapter for PayPal in the UK. We’ve listened to our customers and reimagined our products into one unified solution, offering the smarter way to pay both online and in-stores.” He added that the programme “will redefine what value looks like with every payment.”
How the PayPal+ Rewards System Works
The new loyalty scheme operates on a points-based system. For general spending through a PayPal account, customers will earn one point for every £10 spent. Once they accumulate 1,000 points, they receive £10 back to spend.
However, the real boost comes from using the new physical debit card. Shoppers will earn a significantly enhanced rate of ten points for every £10 spent with the PayPal debit card, effectively delivering the advertised 1% cashback reward. Registration for the free card will open to users in the coming weeks.
Bringing Online Trust to the High Street
Tamer El‑Emary, General Manager of PayPal UK, emphasised the company's commitment to the market: “Our investment reflects a deep commitment to British consumers, businesses, and communities.” He explained the move is about extending PayPal's reach: “For years, millions of people have trusted PayPal when they shop online or on their phones. Now we want to bring everything they love about PayPal online to the high street. Simple, secure, and now with PayPal+ it’s more rewarding.”
The launch marks a significant evolution for PayPal, transforming it from a primarily online checkout option into a fuller financial services competitor on the British high street, complete with physical card products and a compelling rewards structure designed to attract everyday spending.
