PayPal Credit, a service that allows users to add a credit limit to their digital wallet, has been rolled out in the UK with interest-free plans.
To promote the offering, the company will offer 0% interest on purchases over £150 for the first four months.
In addition, PayPal has collaborated with online stores such as Blacks, Dyson, Millets, Samsung and Ultimate Outdoors to use PayPal Credit. They will offer incentives to pay for other items in instalments over even longer periods.
PayPal UK managing director Cameron McLean said: "For consumers, it’s about giving them more choice and convenience when shopping online. For businesses, we are enabling them to grow and offer their customers greater payment flexibility.
"It’s a sign of things to come. As a newly-independent company, we will continue to partner with retailers to find new, improved ways for people to pay."
The company said that PayPal Credit is available to its all existing and new account holders.