The PayPal Top Up card, offered in partnership with Visa and Royal Bank of Scotland, will cost £4.95 to activate and be accepted at high-street stores and ecommerce sites displaying the Visa symbol.
Users can deposit funds onto the card via the Pay-Pal website, at Post Office branches, or at PayPoint retail outlets across the UK.
Research commissioned by MasterCard Europe last year predicted that consumer spending on pre-pay credit and debit cards would exceed £17m by 2010.
PayPal, which has more than 15m UK accounts, has set up a microsite to promote the card.
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