PayPal does not issue its own credit card, but it offers two ways to use credit through PayPal
PayPal itself does not create or issue a credit card with the PayPal name on it. However, PayPal has partnered with card issuers to offer credit products that work within the PayPal ecosystem. The most direct option is the PayPal Credit product, which functions as a line of credit you can use at checkout on PayPal and participating merchants. Separately, PayPal has worked with issuers like Synchrony Bank to offer branded credit cards in the past, though the current availability and terms of these cards change over time.
If you are looking for a card that earns rewards on PayPal purchases or gives you a credit line tied to your PayPal account, you will need to understand the difference between these products and what each one actually does.
Key Takeaways
- PayPal Credit is a line of credit you can use at PayPal checkout and select online merchants, separate from a physical or digital card.
- PayPal has partnered with Synchrony Bank in the past to offer co-branded credit cards, but availability varies by region and changes over time.
- PayPal Credit offers promotional financing periods (often 0% APR for a set number of months on purchases above a minimum amount), but interest rates explore after the promotional period ends.
- A PayPal-branded credit card, if available to you, would be issued by the bank partner, not by PayPal directly, and would have its own terms and interest rates.
How PayPal Credit works as a line of credit
PayPal Credit is a revolving line of credit that PayPal offers directly to account holders who meet their underwriting requirements. When you use PayPal Credit, you are borrowing money from PayPal (or a partner lender) to make a purchase, and you repay that amount over time. You do not receive a physical card; instead, you select PayPal Credit as your payment method at checkout on PayPal.com, the PayPal app, or at participating online retailers.
The credit limit you receive depends on your credit history, payment behavior with PayPal, and other factors PayPal evaluates. You can check your available credit limit in your PayPal account settings. Payments are made directly through your PayPal account, and you can pay in full or in installments depending on the terms of your purchase.
PayPal Credit often advertises promotional financing offers, such as 0% APR for 6 or 12 months on purchases over a certain amount. After the promotional period ends, a standard interest rate applies to any remaining balance. The specific rate and terms depend on the offer and your creditworthiness.
PayPal-branded credit cards issued by partner banks
PayPal has partnered with Synchrony Bank to offer co-branded credit cards in the past. These are actual credit cards issued by Synchrony, not by PayPal, and they carry the Synchrony and PayPal names together. If you hold one of these cards, you receive a physical card in the mail and can use it anywhere Mastercard is accepted, not just on PayPal.
The terms, interest rates, rewards structure, and annual fees (if any) are set by Synchrony, the actual card issuer. PayPal's role is to market the card and integrate it with the PayPal ecosystem. Rewards might include cash back on PayPal purchases, online shopping, or other categories, but the exact benefits change based on which version of the card is currently offered.
Availability of these cards is not may provide in all regions and changes over time. If you are interested in a PayPal-branded credit card, you should check the PayPal website or contact PayPal directly to see whether a card product is currently being offered in your area.
The difference between PayPal Credit and a PayPal credit card
PayPal Credit and a PayPal-branded credit card are two separate products with different uses. PayPal Credit is a line of credit you use only at PayPal checkout or select online merchants—you do not receive a card and cannot use it in physical stores. A PayPal credit card, by contrast, is a physical or digital Mastercard issued by a bank partner that you can use anywhere Mastercard is accepted.
PayPal Credit is managed entirely through your PayPal account and does not require a separate credit card process or monthly billing statement from another company. A PayPal credit card requires a separate process, comes with its own terms and conditions from the issuing bank, and generates its own monthly statement. The interest rates, fees, and rewards are also different between the two products.
If you want to use credit only when checking out on PayPal or partner sites, PayPal Credit may be sufficient. If you want a card you can carry and use in stores, you would need a PayPal-branded credit card if one is available, or a different credit card entirely.
How to check if you have access to PayPal Credit
Not all PayPal account holders have access to PayPal Credit. PayPal evaluates your account based on your history, payment behavior, and creditworthiness. To see whether PayPal Credit is available to you, log into your PayPal account and look for the PayPal Credit option at checkout. If it appears as a payment method, you have been offered a line of credit and can see your available limit.
If PayPal Credit does not appear at checkout, it means PayPal has not yet offered it to your account. You cannot request it directly; PayPal makes the decision based on its own criteria. Over time, as your account history with PayPal grows and your payment behavior improves, you may become may be able to access for PayPal Credit in the future.
Interest rates and fees for PayPal Credit
PayPal Credit charges interest on balances that carry over after a promotional period ends. The standard interest rate (called the APR, or annual percentage rate) varies based on your creditworthiness and current market conditions. PayPal does not publish a single fixed rate; instead, you receive a personalized rate when you are offered the product.
Promotional offers often include 0% APR for a set period (such as 6 or 12 months) on purchases above a minimum amount. If you do not pay off the full balance by the end of the promotional period, interest accrues on the remaining balance at the standard rate. Late payments may result in additional fees and a higher interest rate.
PayPal Credit itself does not charge an annual fee to maintain the account. However, if you use a PayPal-branded credit card issued by a bank partner, that card may carry an annual fee depending on the card type and issuer.
Alternatives if PayPal Credit is not available to you
If PayPal Credit is not offered to your account, you have other options for using credit with PayPal. Many traditional credit cards allow you to link to your PayPal account and pay through PayPal at checkout. You can also use a debit card or bank account linked to PayPal to pay without borrowing.
If you are looking for a rewards credit card that works well with online shopping, you can compare standard credit cards from major issuers. Some cards offer higher cash back or points on online purchases, which may be more valuable than waiting for PayPal Credit to become available. You would explore for these cards directly with the issuer, not through PayPal.
Frequently Asked Questions
Can I use PayPal Credit in physical stores?
No. PayPal Credit is a line of credit you can use only at PayPal checkout and select online merchants. It does not come with a physical card and cannot be used in stores. If you want to use credit in physical locations, you would need a PayPal-branded credit card (if available) or a different credit card.
What happens if I do not pay my PayPal Credit balance on time?
Late payments on PayPal Credit are reported to credit bureaus and may damage your credit score. PayPal may also charge late fees and increase your interest rate. If you fall significantly behind, PayPal may close your credit line and refer the debt to a collection agency.
Is PayPal Credit the same as PayPal's Buy Now, Pay Later product?
No. PayPal offers a separate Buy Now, Pay Later product that lets you split a purchase into installments, often with no interest if paid on time. This is different from PayPal Credit, which is a revolving line of credit. The terms, fees, and how you use each product are different.
How do I know what interest rate I will pay on PayPal Credit?
PayPal does not publish a single interest rate for all users. Your rate depends on your credit profile and is determined when PayPal offers you the product. You can see your rate in your account settings or in the terms of the offer before you use PayPal Credit for the first time.
Can I transfer a balance from another credit card to PayPal Credit?
PayPal Credit does not offer balance transfers. It is designed for new purchases at PayPal and partner merchants, not for paying off debt from other cards. If you want to consolidate credit card debt, you would need to look at balance transfer cards or personal loans from other lenders.