PayPal relaunches in UK with credit cards, PayPal+ loyalty and fee-free global spending

PayPal has stormed back into the UK market with a full suite of products meant to reshape how Brits pay; online and now, finally, in physical stores.

As of this morning, across the UK, customers can get their hands on a PayPal Debit Card, rack up rewards through a new PayPal loyalty program, and spend globally without paying PayPal’s infamous transaction fees.

The company is calling it a “smarter way to pay,” but what actually dropped today is a complete rebuild of their consumer experience.

This isn’t just a product refresh. It’s a full ecosystem. PayPal is now offering credit, debit, loyalty, and Buy Now Pay Later in one tight loop. The UK is the first country getting access to PayPal , the company’s first loyalty scheme.

This means that PayPal customers can earn points every time they pay online or in person, no matter if they use their balance, a linked card, or the Buy Now Pay Later option.

Customers unlock 10x points using PayPal Debit Card

The new PayPal Debit Card is reportedly free and connects straight to your PayPal wallet, and when paired with PayPal , customers earn 10 times the normal loyalty points on everyday spending.

Every 1,000 PayPal points equals £10 of spendable value at checkout when using PayPal online. And it stacks. Customers can combine these points with other loyalty programs, so they aren’t giving up rewards from supermarkets or travel apps, they’re adding to them.

Points are collected automatically and there are no redemption fees, hidden conditions, or expiry dates. The tiers are simple: everyone starts at Blue.

Rack up more points and you move to Gold, then Black. Each tier gives access to higher-value redemptions (up to 50% more) and even special VIP offers and experiences.

UK customers are first in line globally to use this system. That alone makes this a big play from PayPal, who clearly want their card in your physical wallet, not just your digital one. The card rolls out today in the PayPal app and is available for anyone with an account.

PayPal Credit expands into physical stores with real cards

The credit side of PayPal is getting serious too. Until now, PayPal Credit was online-only. Now, it’s adding both a virtual and physical card to let customers pay in stores just like any other credit card. Every PayPal Credit payment also earns PayPal points.

Even the Buy Now Pay Later option, called Pay in 3, qualifies for point accumulation. That means a shopper can break up a payment and still get rewarded for it.

This relaunch isn’t just about payments. It’s being rolled out alongside brand partnerships, starting with Live Nation UK.

PayPal customers will get early access to concerts and festivals, plus perks on-site. These are the kinds of things PayPal hopes will give the platform more daily relevance.

Backing it all is a £150 million product investment, which PayPal says is going toward reshaping their offering for British users.

They’ve already led online payments for over 20 years. Now, they’re going full omnichannel, embedding themselves in the rise of in-person AI-driven spending too.

“This is the start of an exciting new chapter for PayPal in the UK,” said Diego Scotti, General Manager of the Consumer Group.“We’ve flipped the script on loyalty.

That means no fees where others charge, a new debit card that delivers 10 times as many points, and more ways to get rewarded for everyday spend, including Buy Now Pay Later.”

Tamer El‑Emary, General Manager of PayPal UK, added: “We’ve listened to our customers and built products that rethink how people use PayPal every day. Now we want to bring everything they love about PayPal online to the high street.”

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