PayPal, the money transfer arm of online auction site eBay, today announced it is to branch out into credit cards.

The business, which has more than 10m UK accounts, is linking up with GE Money to offer credit cards to people in the UK.


The card has an interest rate of 12.9%, with 0% interest on balance transfers for the first six months and no annual fee.
It will initially be available only to selected account holders, but from mid-May anyone will be able to apply.


PayPal said it will offer instant decisions to applicants, as well ID theft insurance and an guantees against internet fraud.

Geoff Iddison, chief executive of PayPal Europe, said:

The ID theft and internet security features of the PayPal credit card will appeal to our online shopping customers and the card will enable them to buy through PayPal, as well as on the high street and with other ecommerce sites.

However, Alec Hodgson, a spokesman at comparison service uSwitch, said the card offered "nothing special" to consumers".

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