PayPal Returns to UK With Unified Online and In-Store Payments

PayPal Returns to the UK Market

PayPal has relaunched in the United Kingdom with a unified payment experience that integrates online and in-store transactions. The move marks the company’s most comprehensive UK rollout in years, combining its payment products, cards, and new loyalty programme under one system.

As of 12 November 2025, users can join PayPal+, the firm’s first loyalty scheme launched globally. The programme allows customers to earn and redeem points across online and in-store purchases, a will make everyday spending more rewarding for UK consumers. are also included as part of the offering.

Investor Takeaway

First Market for PayPal+

The UK is the first market to access PayPal’s new loyalty scheme. Registration is free through the PayPal app, with customers earning points whenever they pay using their PayPal balance, linked cards, or purchase-now-pay-later (BNPL) services. Every 1,000 points equals £10 redeemable at checkout with any PayPal merchant worldwide.

The programme’s three tiers—Blue, Gold, and Black—offer progressively higher rewards. Unlike many rival schemes, PayPal+ has no membership fees or redemption limits. Points can also be stacked with other retailers’ loyalty systems, enabling shoppers to accumulate benefits across multiple programmes.

PayPal said the system is designed to simplify loyalty across digital and physical payments, offering consistent rewards regardless of where customers shop. It also comes at a time when UK consumers are increasingly using mobile wallets for in-store purchases, following years of dominance in e-commerce.

Debit and Credit Cards for Everyday Payments

The launch of PayPal’s new cards extends its reach beyond online transactions. The PayPal Debit Card, initially available to UK customers, connects directly to the user’s PayPal wallet. It can be used globally without PayPal transaction fees and provides 10x PayPal+ points on in-store purchases.

The card integrates spend tracking within the PayPal app, allowing users to manage balances and rewards from a single dashboard. It can also be added to smartphones for contactless payments. The company described the debit rollout as a key step in transforming PayPal from an e-commerce processor into a full retail payments brand.

Alongside the debit card, PayPal will expand its PayPal Credit product to in-store use, issuing both physical and virtual cards. Credit for online or offline purchases can continue earning PayPal+ points. The company’s Pay in 3 BNPL service will also remain active in the UK market, with transactions eligible for rewards under the loyalty scheme.

Investor Takeaway

Competitive Landscape

PayPal remains one of the UK’s most widely used digital wallets, but faces growing pressure from Apple Pay, Google Pay, and challenger . By launching PayPal+ in the UK first, the firm appears to be testing the market’s appetite for a universal rewards system that bridges e-commerce and point-of-sale transactions.

The company has not disclosed when PayPal+ will be rolled out to other markets. Analysts say the move could assist re-establish PayPal’s brand in physical retail while reinforcing its dominance in online payments. For now, British customers will be the first to view whether a unified experience across cards, credit, and BNPL can drive new adoption.