eBay owned PayPal is launching a credit card in the UK through a tie up with GE Money. It has already launched one in the US and is planning to offer 100,000 of its British account holders the card first later this month.
The card itself is unremarkable, as is a deal to offer a card with an affinity brand, but whilst cards with brands such as football clubs make sense, tapping into the fan loyalty, a card with PayPal seems a bit weird.
The card itself offers the usual type of thing - 12.9% APR with 0% interest on balance transfers for the first six months – but the sting may be in the tail in this deal as PayPal has said that the card is the first of a number of financial services it plans to offer in the future, leaving plenty of room for speculation.
Obvious tie-ups will be to get people to use the cards on eBay, but other tie-ups could see benefits for PayPal customers when used for other online transactions and it could even be part of a wider move by PayPal to move into the traditional market as Visa and Mastercard move online with their respective plays Verified by Visa and Mastercard SecureCode.
Secure online payment is a big component in the growing popularity of e-commerce, moving into the mainstream with a credit card may convince those who are not digital at heart that PayPal is as safe an option as Visa or Mastercard.
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