Paypal Smart Connect Credit: A Good Choice? | Credit Shout
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Paypal Smart Connect Credit: A Good Choice?

By Christine Layton / May 27, 2018
Paypal Smart Connect Credit

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Introducing PayPal Smart Connect

Smart Connect is PayPal’s new service that extends you credit to fund your PayPal account. With Smart Connect, you can enjoy low monthly payments on PayPal purchases as well as occasional financing promotions.

You may be asking: How does the service differ from a regular credit card? Is it worth it to apply?

Read on to find out more about PayPal Smart Connect credit and the benefits it offers.

Features & Benefits

  • Low monthly payments – You enjoy monthly payments on your PayPal purchases while the seller gets full payment upfront through GE Capital Retail Bank, the entity behind the credit service.
  • Promotional financing – You can take advantage of promotional financing through qualified sellers, including no interest if paid in 3, 6 or 12 months as well as fixed monthly payments at 12.9% APR for 12 or 24 months.
  • Buyer Protection – Purchases receive complete Buyer Protection through PayPal at no extra cost. Buyer Protection covers you if you pay for an item you never receive or receive an item that is very different than described in an eBay listing.
  • Shop anywhere PayPal is accepted – Your Smart Connect credit can be used on eBay and other websites that accept PayPal, including Overstock, Zappos, Hotwire, Target and Toys R Us.
  • Instant approval – You’ll get a credit decision in about 30 seconds informing you if you’ve been approved for PayPal Smart Connect. Your credit history will determine your credit limit.

How Smart Connect Compares to a Credit Card

PayPal’s Smart Connect service only extends you credit to fund payments to other PayPal accounts or to make purchases on websites that accept PayPal payments.

It cannot be used for cash advances, on websites that don’t accept Smart Connect or to recover a negative balance on your PayPal account. There is also no rewards program through PayPal Smart Connect, or any other benefits you get from credit cards today, such as travel insurance or extended warranties.

You can’t use your PayPal Smart Connect credit in-store, either. Still, it offers a good way to finance PayPal purchases, whether you’re shopping through eBay or buying toys through Just remember the very high interest rate and make sure your balance is paid quickly.

Final Thoughts — Should You Apply?

PayPal Smart Connect is not a credit card and instead offers you a way to increase your purchase power online and enjoy low monthly payments on purchases through eBay and other merchants that accept PayPal.

It’s important to note that the APR for this credit service is very high at 26.99%, so take advantage of financing promotions and pay your balance off quickly to avoid sky-high interest charges. If used carefully, the PayPal Smart Connect service can be beneficial if you find yourself shopping online and through eBay often.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone. Additionally, the opinions of the commenters are not necessarily the opinions of this site


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Editorial Discloser: Opinions expressed here are authors alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.