PayPal launching debit and credit cards in major shake-up for millions of users

 PayPal is launching its first-ever debit and credit cards, alongside a new loyalty scheme.

Both physical and digital versions of these cards will be available, meaning shoppers will be able to use their PayPal wallet to make purchases in stores for the first time.

The new PayPal debit card will link directly to your PayPal wallet, plus one of your bank accounts. When you make a purchase, if you don't have funds in your PayPal wallet, the money will be debited from your bank account.

PayPal says the debit card can be used worldwide without transaction fees. The PayPal credit card can be used everywhere Mastercard is accepted.

It comes as PayPal rolls out its new loyalty programme from today, where shoppers will be able to earn points on both online and in-store purchases.

Customers earn one point for every £10 spent, then when they reach 1,000 points, they get £10 back to spend when using their PayPal account. Shoppers get ten points for every £10 spent with the PayPal debit card.

There will be three loyalty scheme ties, starting at the Blue tier, and progressing to Gold and Black tiers. Gold and Black tier members get points worth up to 50% more at checkout, along with access to VIP experiences and other perks.

The scheme is also compatible with other loyalty programmes, meaning PayPal+ points can be stacked and earned on top of other loyalty points. PayPal+ is free to sign up for.

Diego Scotti, General Manager of PayPal’s Consumer Group, said: “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.

“With PayPal+, 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. This will redefine what value looks like with every payment.”

Tamer El‑Emary, General Manager of PayPal UK, added: “Our investment reflects a deep commitment to British consumers, businesses, and communities. We’ve listened to our customers and built products that rethink how people use PayPal every day.

“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.”