PayPal Pay in 3 Agreement
Key Product Information | |
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Interest rate: | 0% per annum fixed for the duration of the agreement. |
Loan amount: (this is the amount of credit under the agreement) | £{ }. The Loan amount may change if there are changes relating to shipping, taxes or updates to your purchase. We'll notify you of the updated loan amount and you can see this in your account. |
Cash price of the goods / services your agreement is financing: | £X { } This is the total cash price of your purchase (your “Order”) before any special funding arrangements are applied to your purchase. The cash price may change based on shipping, taxes or updates to your purchase. More detail on special funding arrangements can be found in the PayPal User Agreement. Examples of special funding arrangements include merchant or transaction specific balance, gift vouchers or promotional funding arrangements. |
Repayment Plan | You will repay the Loan in three instalments. Instalment 1: £[ ] on [ ] or such later date (up to 29 days from the date of this agreement) as the merchant processes your order. Instalment 2: £[ ] due on [ ] Instalment 3: £[ ] due on [ ] We'll remind you of your payment due date and the repayment amount due before your payment is due. We will also notify you if the repayment amount changes or if the due date changes. You must have an active UK PayPal account and either a confirmed, active linked bank account or a valid, active linked debit card. You can opt to make your repayment by way of direct debit or by providing us with a continuous authority to collect your repayment from your debit card (a continuous payment authority). See the Additional Product Information below. You agree that we may collect the repayment (including any updated repayment) using your chosen payment method on the due date. Repayments made by you under this Agreement will be applied:
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Missed repayments | If you miss a payment we will report you to one or more credit reference agencies, which may make it more difficult or more expensive for you to obtain credit in the future. Missing a payment may affect your ability to use us in the future. There are no late fees with Pay in 3. If your payment (or any retry) does not go through, we will then contact you for repayment. You will also not be able to take out any further borrowing with us. We may also end your agreement. We will notify you before we do so. If you or we end your agreement early you will need to immediately repay to us all sums you owe to us. You may also face legal action to recover what you owe. |
Consulting with credit reference agencies: | We sometimes need further information before we decide whether to lend to you. If we intend to obtain information about you from credit reference agencies, we will tell you this before you apply for Pay in 3. This will be a soft credit check which does not affect your credit score. Further information about how PayPal uses credit reference agencies can be found in our Privacy Statement. Where you borrow from us, we give details of your Pay in 3 Loans and how you manage them to Credit Reference Agencies. If you do not repay in full and on time, Credit Reference Agencies may record the outstanding debt. |
Your rights | You can find information about certain rights in the Additional Product Information section below. |
Other contractual terms and conditions | Other contractual terms and conditions apply to your agreement for Pay in 3. You can read these at the end of the Additional Product Information section under Terms and Conditions. |
Additional Product Information | |
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Lender: | PayPal UK Ltd, 5 Fleet Place, London, United Kingdom, EC4M 7RD. |
Supplier (merchant): | { } |
Withdrawal rights: | You have a right to withdraw from the agreement for any reason in accordance with section 66A of the Consumer Credit Act 1974. Your right to withdraw starts on the day after the day on which your agreement is made and ends 14 days later. To exercise your right to withdraw, you can contact the PayPal Customer Support team by calling the number shown here. If you withdraw, you must repay us the credit without delay, and in any event no later than 30 calendar days after giving notice of withdrawal. |
Repaying early: | You can repay sums you owe us under the agreement early at any time without penalty. If you want to repay early you can contact the PayPal Customer Support team by calling the number shown here or by logging into your PayPal account and making a payment on your Pay in 3 Loan. If you choose to make an early repayment then we will treat this as follows:
You will not be able to settle the Loan Amount before the merchant has completed processing the Order. |
Financial Ombudsman Service rights: | If you're not satisfied with any aspect of our product or service, please raise a complaint with us in the first instance by contacting the PayPal Customer Support team on the details shown here or online at www.paypal.com/uk by selecting ‘Help’. We'll aim to resolve it as soon as possible. If you're not happy with the outcome, or if we've not resolved your complaint within 8 weeks, you can refer your complaint to the Financial Ombudsman Service (FOS) for independent investigation. FOS can be contacted at Exchange Tower, London E14 9SR or on 0800 023 4567 or online at www.financial-ombudsman.org.uk. |
What happens if you return your purchase: | You usually have rights under consumer law to cancel your Order at any time within 14 days. The 14-day period starts:
You may have a longer cancellation period either under a merchant’s policy or under consumer law in certain circumstances. You can usually view further details on the merchant’s website or within their communications about your Order. Some Orders cannot usually be cancelled – for example, purchases of personalised items, perishable items and sealed audio, visual or software which you open. Cancelling your Order in full If you choose to cancel your Order, it will also mean that your agreement with us automatically ends. Once a merchant has confirmed the cancellation of your Order and the amount of any refund due, we will update your payments and return any amounts due to you. PayPal will take these steps promptly, usually within 24 hours of receiving a refund from the merchant. You may sometimes not be entitled to a full refund, for example if you chose a more expensive shipping option, if the goods are not returned in their original condition, or if the applicable currency conversion rate changes between the purchase date and the date of the refund. Unless you:
we’ll continue to process any payments in accordance with the dates set out in your Repayment Plan. If you are concerned that your next repayment will be taken before we receive confirmation from the merchant, you can contact us online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact us’ to let us know you’ve cancelled your Order so that we can either pause your next payment or stop repayments being taken automatically. Cancelling part of your Order If you choose to cancel part of your Order or the merchant provides a partial refund, the Loan Amount will be reduced by the same amount accordingly with the future instalments to be paid pursuant to the Repayment Plan being reduced equally and proportionally. You can view your revised Loan Amount and Repayment Plan by logging into your PayPal account. We'll also notify you if the repayment amount changes. Where your Order was funded by a special funding arrangement in addition to your Pay in 3 Plan: If you cancel your Order, or part of your Order or the merchant provides a partial refund, any refund will be applied in the following order:
Where the refund is not enough to repay the Loan Amount in full, it will be reduced by the refund amount and your repayment will be reduced by the same amount. In this situation, any special funding arrangement will not be re-instated to your PayPal account. If any activity detailed here results in an overpayment to your Pay in 3 Loan, PayPal will reimburse the overpaid amount to your PayPal balance as quickly as possible. In the event you receive a refund from a merchant, it is your responsibility to return the item purchased to the merchant and, other than as set out in this agreement and your statutory rights, we will not be held liable for a dispute between you and the merchant in relation to an item purchased. |
Financial Difficulty | If you are in, or might be approaching, financial difficulty please contact us as soon as possible to discuss how we can help. You can do this by contacting the PayPal Customer Support team by calling the number shown here. |
Consumer protections available to you: | In line with Section 75 of the Consumer Credit Act 1974 if the cash price of the goods / services being funded by the agreement (as set out in the Key Product Information) is more than £100 and not more than £30,000 you could have a right to claim against us as well as the Supplier. This means that if you have a claim against the Supplier (set out above) for misrepresentation or breach of contract then you will also have a like claim against us. If you think you have a section 75 claim, please contact us here in the first instance. |
Continuous payment authority | A continuous payment authority is an authority you give to us which allows us to take payment from the debit card attached to your PayPal account. You can choose to pay using either a continuous payment authority or by direct debit. If you provide us with a continuous payment authority, other than as set out below, we will not attempt to collect a payment, or part payment, unless we agree this with you at the time. You can cancel the authority by either contacting us here or by contacting your card provider. If you do contact your debit card provider, then you should tell us. If you cancel, you will still need to repay any amounts you owe using another payment method. The way in which we will use the continuous payment authority is as follows:
If we are still not able to collect your repayment, you must log in to your PayPal account and pay the outstanding amount manually using the available options. We may also take the repayment from the balance of your PayPal account, if any. We will not charge any default fees if we are unable to collect repayment. |
PayPal Pay in 3 - Terms and Conditions Version: 15 July 2026 | |
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Customer name | { } |
Customer address | { } |
Customer email | { } |
PayPal account ID | { } |
Pay in 3 Loan ID | { } |
Agreement date | { } |
About your agreement with us
We are PayPal UK Ltd and our company number is 14741686. Our registered office is at 5 Fleet Place, London, United Kingdom, EC4M 7RD. We are authorised and regulated by the Financial Conduct Authority (FCA) and you can find us on the FCA's register under firm reference number 996405.
These Terms and Conditions apply to our Pay in 3 service. Each time you use Pay in 3 you will enter into a deferred payment credit agreement, which is comprised of the Key Product Information and the Additional Product Information, as well as these Terms and Conditions. Together these documents form a legal agreement between you and us and we collectively call them the "Pay in 3 agreement" throughout these terms. In particular, your Key Product Information document sets out details of the amount of credit to be provided and the cash price of the goods or services being financed under the Pay in 3 agreement.
1. When is Pay in 3 available?
Pay in 3 is a short-term credit product which allows you to fund eligible purchases of goods or services where you see this as an option in checkout. Pay in 3 is only available for purchases within certain threshold amounts and may not be available for purchases with certain merchants.
The transaction amount is the value of the cash price of your purchase less any special funding arrangement applied. We will automatically apply any merchant or transaction specific balance linked to your PayPal account to fund an eligible purchase and this will reduce the amount which is available to be funded through Pay in 3. Pay in 3 will not be available where the transaction amount is reduced below the minimum eligible threshold amount.
Pay in 3 is available to natural persons of at least 18 years old residing in the United Kingdom that hold a UK PayPal account with a valid active debit card or bank account linked to it as a funding source for the duration of this Pay in 3 Loan.
Our decision to lend to you under this agreement is based on, amongst other things, our assessment of your financial position, the information you provided us within your application and information about your usage and history with PayPal.
2. Do you charge late fees?
No. There are no late fees for Pay in 3.
We also do not charge interest or any fees for entering into the agreement. Use Pay in 3 responsibly. Missing payment may affect your ability to use us in the future.
3. How does payment work with Pay in 3?
When you purchase goods or services from an eligible merchant using Pay in 3, we will provide credit by transferring the cash price to the merchant.
Pay in 3 is only available in pounds sterling (GBP). If you pay in a currency other than GBP, we will convert the amount into GBP and will apply conversion or other fees as described in our User Agreement. Most merchants process your Order right away, but sometimes there are delays. If the merchant processes the Order more than 72 hours after you agreed to the Pay in 3 agreement, we will use the exchange rate in effect at that later time.
4. Can the Loan Amount change?
Yes, updates to your Order can impact the amount you owe. This can happen for example when:
You change your Order after you’ve agreed to use Pay in 3 with us, for example by accepting in checkout additional costs such as express shipping, paid gift wrapping, insurance or by applying vouchers or discount codes.
If the merchant delays in processing your Order and the applicable currency conversion rate changes from the date of your agreement.
If the merchant only processes part of your Order.
In these situations you are asking us, and we are agreeing, to update your Pay in 3 Agreement to match. The update to your Pay in 3 Agreement will take effect when we update your Loan Amount and repayment details in your PayPal account. We will notify you of these changes.
5. What else do I need to know about repayment?
Repayment is made automatically from your PayPal account using the funding source you select, either your chosen debit card or a bank account linked to your PayPal account. We do not allow customers to make repayment using a credit card.
You can change your funding source in your PayPal account at any time.
If there is a delay by the merchant in processing your Order then the repayment date of your first instalment will be delayed accordingly. The dates of your second and third instalment are fixed based on the date of this Agreement and will be the same as set out above.
Your repayment amount may change if the merchant does not process your full Order together. Once the merchant processes the remaining part of your Order, we'll send you an updated notification.
If payment of your first instalment at the time of application is rejected or fails, your application for PayPal Pay in 3 will be declined and you will be asked to choose a different method of payment for your purchase.
6. What if I overpay?
If you repay us more than you owe us, we will refund any extra amount to your PayPal account as quickly as possible. If we refund your PayPal account and it is later determined that no refund should have been paid, we will be entitled to recover it from your PayPal account where there is sufficient balance or from your Repayment Method.
7. What if my Order does not complete?
If you do not complete your Order in checkout or if the merchant does not process your Order within 29 days from the date of this agreement, this agreement will end with no costs or liabilities imposed on either you or PayPal.
8. Do I have to repay if I'm in dispute with the Supplier?
Yes. You need to make payment to us as set out in your Repayment Plan, even if you have a dispute with the Supplier or any third party. You may not withhold, delay, or offset payment to us for any reason and we are not responsible for resolving such disputes.
Failure to pay on time may affect your ability to use us in the future.
9. Can I repay you early?
Yes - you can pay back what you owe us early at any time. There is no extra charge for paying early.
If you want to repay early you can contact the PayPal Customer Support team by calling the number shown here or by logging into your PayPal account and making a payment on your Pay in 3 Loan.
At any time, you can repay:
- the next instalment in your Repayment Plan, or
- the outstanding Loan Amount, or
- another amount which is less than your outstanding Loan Amount.
If you choose to make an early repayment then we will treat this as follows:
- If you pay the next full instalment in your Repayment Plan, we will not debit your Repayment Method on the date specified for that instalment.
- If you pay an amount which is less than your next instalment amount, we will apply your payment to reduce the amount of your next instalment. We will still debit your Repayment Method on the date of your next instalment for any amount remaining on your next instalment.
- If you pay an amount which is more than your next instalment amount, we will not debit your Repayment Method on the date specified for your next instalment. We will apply any amount leftover to reduce the instalment that follows. We will still debit your Repayment Method on the date of that instalment for any amount remaining.
10. How do you manage late payment?
We’ll contact you to let you know as soon as we can if you have missed your payment.
Please read the “Missed repayments” section in the Key Product Information.
11. What if I cannot pay you on time or I am struggling financially?
If you are not able to pay us on time, please contact us as soon as possible so we can help you. We will work with you to find a suitable solution where possible. There are also other independent sources of support available who may be able to answer your questions or provide help, including:
- MoneyHelper: visit https://www.moneyhelper.org.uk or phone 0800 138 7777.
- PayPlan: visit https://www.payplan.com/ or phone 0800 280 2816.
- StepChange: visit https://www.stepchange.org/ or phone 0800 138 1111.
12. How can we contact each other?
You can contact the PayPal Customer Support team at any time by calling or contacting us here or by logging into your PayPal account and choosing ‘Help’ and ‘Contact PayPal Support’. You can contact us online at www.paypal.com/uk by selecting ‘Contact’.
We’ll communicate with you in English and in electronic form by posting information to your account (which is only accessed by logging into your Account), emailing it to the email address listed in your Account, calling you by phone, or sending you a “text” / SMS message.
If we have reasonable grounds for believing that you have changed your email and postal addresses, for example because our correspondence is returned to us, we may instruct agents to trace you.
13. Can you make changes to these terms?
Whenever you choose to use Pay in 3, you will need to agree to the PayPal Pay in 3 agreement terms including the applicable Terms and Conditions at that time (which might differ from what you agreed to before). The Terms and Conditions in effect when you enter into a Pay in 3 agreement will apply to that Pay in 3 agreement. We'll never change those terms unless we agree with you first or if we're required by law, rule, or regulations.
You can log in to your PayPal account using the PayPal website or mobile app. From there, you can review, download, or print your Pay in 3 agreement at any time.
14. Liability
If we breach the Pay in 3 agreement, we are responsible for losses you suffer which are a foreseeable result of that breach and only up to the amount we have lent under the Pay in 3 agreement.
Nothing in this agreement limits or excludes our liability where it would be unlawful to do so.
15. Ending this agreement
This agreement will automatically end:
- Once the merchant has completely processed payment for your Order and the Loan Amount is repaid in full; or
- if you do not complete your purchase; or
- if the merchant does not process your Order within 29 days from the date of this agreement; or
- where you exercise your right to cancel the Order.
We may end this agreement and require repayment without delay of the full amount you owe us if:
- we find out that our decision to lend to you was based on inaccurate, misleading or incomplete information;
- you breach this agreement regularly or seriously;
- you break the law or you appear on any sanctions list that we monitor;
- we have a reasonable belief that you no longer have the ability to control your account, including if you are deceased or of unsound mind;
- you have broken the terms of another agreement with us (including a Pay in 3 Loan agreement or a PayPal Credit agreement);
- we reasonably believe you no longer reside in the United Kingdom; or
- if you close or attempt to close your PayPal account.
We will only take this step where it is proportionate and in line with applicable law.
To the extent permitted by the applicable law, we may also require you to pay any reasonable losses and costs that we incur as a result of you breaching this agreement.
16. Other legal information
There are other PayPal terms and conditions you should know about when using our services. The PayPal User Agreement will govern your wider use of your PayPal account in completing your purchase. The PayPal User Agreement is available on the PayPal website and can be seen here.
In case of any conflict between other terms of the Pay in 3 agreement (the Key Product Information and the Additional Product Information) and these terms, the other terms of the Pay in 3 agreement shall apply.
Our privacy policy is here.
Only you and we have rights and obligations under the Pay in 3 agreement. If you break the Pay in 3 agreement and we do not enforce our rights against you, this will not stop us from enforcing those rights or other rights at a later date.
You cannot transfer any rights you have to anyone else. We can transfer our rights and obligations to our group companies and third parties. We will let you know about this unless your Pay in 3 agreement will not be affected. Your legal rights will not be affected by the transfer.
English law applies to the Pay in 3 agreement. If your address is in England and Wales, any dispute about these terms will be dealt with by the courts of England and Wales. If your address is in Scotland, any dispute about these terms will be dealt with by the courts of Scotland. If your address is in Northern Ireland, any dispute about these terms will be dealt with by the courts of Northern Ireland.
PayPal UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money institution under the Electronic Money Regulations 2011 for the issuance of electronic money (firm reference number 994790), in relation to its regulated consumer credit activities under the Financial Services and Markets Act 2000 (firm reference number 996405) and for the provision of Cryptocurrency services under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (firm reference number 1000741).