PayPal has launched a debit card, a credit card and a loyalty scheme in the UK, expanding how customers can use their accounts beyond online checkout1. The announcement was reported on 22 November 20251.
The PayPal debit card sits alongside the customer's PayPal balance and can be used for everyday spending in shops or online, as well as for cash withdrawals at cashpoints1. A digital version is available immediately, with a free physical card ordered in the app, and there are no fees for using the debit card abroad1. Customers using PayPal Credit can apply for a virtual or physical card that lets them spend their credit in-store rather than only online1. A 2.5% fee applies when using the credit card abroad1. Both cards are issued by Mastercard1.
PayPal+ is free to join and can be activated in the app1. Points are earned whenever a customer pays through PayPal, whether using their balance, PayPal Credit, Pay in 3 or a linked card, at one point for every £10 spent; paying with the PayPal debit card earns one point for every £1 spent1. The scheme has three tiers, and the tier determines the value of points and extra benefits1.
| Tier | Points value | Extra benefits |
|---|---|---|
| Blue (0-24,999 points) | 100 points = £1 | None listed |
| Gold (25,000-49,999 points) | 100 points = £1.20, or £1.50 in grocery, dining and food purchases | 100% cashback on subscriptions (up to £12.50 a month); 1,000 points a month when spending more than £10 with PayPal on the first Friday of every month |
| Black (50,000+ points) | 100 points = £1.30, or £1.50 in grocery, dining and food purchases | 100% cashback on subscriptions (up to £12.50 a month); 2,000 points a month when spending more than £10 with PayPal on the first Friday of every month |
Customers have a year to qualify for the next tier before points reset, and once a tier is reached it is held until the end of the next calendar year1. PayPal+ offers the equivalent of 1% cashback when spending with the PayPal debit card, and the rate can rise to 1.5% on selected purchases at the Gold or Black tiers, though reaching those tiers requires at least £25,000 of spending through PayPal1. At Gold and Black, up to £270 and £440 respectively in additional cashback per year can be earned from subscriptions and spending rewards1.
"PayPal has shaken up its UK offering with the launch of a debit card, credit card and loyalty scheme."
On protection, eligible purchases made online using the PayPal debit card or credit card, bank account or PayPal balance are covered by PayPal Buyer Protection, which does not apply when the debit or credit card is used in shops1. Payments made with either card, online or in-store, are also covered by chargeback1. Section 75 applies only when paying directly with regulated PayPal Credit for purchases costing between £100 and £30,000, and does not apply to Pay in 31. PayPal Credit offers four months interest-free on purchases from £99, and Pay in 3 splits the cost of purchases over three interest-free instalments1.
Why it matters for households
The cards move PayPal spending into shops and cashpoints, not just online checkout, and the points scheme rewards that spending from the point of activation in the app1. The value of those points depends on the tier held: at Blue, 100 points are worth £1, while at Gold and Black the same points are worth £1.20 and £1.30 respectively, or £1.50 on grocery, dining and food purchases1. Reaching Gold requires 25,000 points, which the reporting links to at least £25,000 of spending through PayPal1. Points reset after a year if the next tier is not reached, and a tier held is kept until the end of the following calendar year1.
Costs differ between the two cards: the debit card carries no fees abroad, while the credit card carries a 2.5% fee on overseas use1. The level of purchase protection also varies by how a payment is made, with Buyer Protection limited to eligible online purchases and Section 75 limited to direct payments with regulated PayPal Credit1. For households weighing rewards against protection, the rewards and cashback credit cards and cashback versus points reward cards guides set out how these schemes generally work, and how credit cards affect your credit file covers the reporting side. The differences between paying by debit card and credit card are also relevant to how the two new cards are used.
What happens next
No launch date beyond the 22 November 2025 reporting has been announced, and no date has been given for when the cards or PayPal+ become available to customers generally1.
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