April 12, 2006

By Peter Kenny

PayPal, the online bank owned by Ebay, has just launched a new credit card, which is available to its 10 million account holders in the UK.

After a successful launch in the United States, PayPal has partnered with GE Money to produce a credit card with an APR of 12.9% and 0 per cent on all balance transfers for the first six months of the account opening.

PayPal is an Internet business that allows the transfer of money between email users, avoiding traditional paper methods such as checks/cheques and money orders. PayPal also performs payment processing for e-commerce vendors, auction sites, and other corporate users, for which they charge a fee. This latest move is seen as a natural progression of the PayPal brand and heralds more developments that are planned shortly.

Geoff Iddison, from PayPal Europe, said: "PayPal has an established customer base in the UK and has built a reputation as a trusted financial services brand amongst its users. Moving into other financial products is a natural development for the brand. The credit card is just the first of a range of new services that we have planned."

GE Money currently supplies the majority of store cards available in the UK.

For more information please visit PayPal