Paypal launches UK's cheapest pre-paid debit card

Paypal quietly launched its pre-paid Visa debit card over the weekend with the interesting news that the card appears to be the cheapest to run in the UK.

Costing just £4.95 to sign up for, the card costs nothing to use on UK purchases (online or offline) and, unlike competing cards, costs nothing to top up if you load the credit from your Paypal account.

For eBay sellers, the card is something of a no-brainer, as it allows them to spend their dosh as soon as it arrives in their Paypal account, although drawing readies at a cashpoint does cost, so punting balances to regular bank account is still the best option if you want cash in your hot little hand.

The advantage to Paypal, of course, is that the money routed through the card allows it to generate standard Visa transaction revenues, as well as saving the company the added cost of pushing real money into punters' bank accounts in the UK from Ireland.

Looks interesting - for a fiver, I think I shall invest...