How to Buy Bitcoin with PayPal in the UK and New Zealand

The pros and cons of buying Bitcoin with PayPal, explained

Sam Blackmore| May 30, 2019


If you’re trying to learn how to buy Bitcoin with PayPal, you’re not alone. Roughly 3,000 people a month use Google to find out how to do just that, according to marketing analytics firm Moz and it’s easy to understand why. There are many overlapping use cases for PayPal and cryptocurrency. Like Bitcoin and other cryptocurrencies, PayPal helps people who don’t have bank accounts do things like shop online and send money to their friends and family. The problem is that most cryptocurrency sellers do not accept PayPal payments. Fortunately, there are workarounds that will let you buy Bitcoin with PayPal if you need to do so.


Keep reading to learn everything you need to know about buying Bitcoin with PayPal in New Zealand and in the UK.


Why won’t most Bitcoin exchanges accept PayPal payments?

The main reason why most Bitcoin exchanges and purchasing services don’t accept PayPal payments has to do with a limitation of a PayPal feature called seller protection.


Seller protection lets PayPal merchants dispute chargebacks. When someone buys something with PayPal and then abuses the chargeback system to try to get their money back after a sale, sellers can contest the chargeback by sending in proof that the customer had indeed received the product they ordered.


However, seller protection only covers physical goods not services and digital items. That means that selling Bitcoin with PayPal is a very risky business. Since Bitcoin transactions can’t be reversed, scammers are free to cheat anyone who accepts PayPal payments for Bitcoin.


How to buy Bitcoin with PayPal

The best way to buy Bitcoin with PayPal is through a decentralized cryptocurrency exchange. Decentralized cryptocurrency exchanges are free and open marketplaces that anyone in the world can join. Once a seller sets up shop, they can make their own rules and decide which forms of payment they’ll accept.


The main disadvantage of decentralized exchanges is that they are expensive and hard to use compared to Vimba and other cryptocurrency purchasing services.


Here at Vimba, we charge a flat 3.5% fee and an additional 1% fee, which helps pay for cryptocurrency purchasing costs. Individual sellers that use decentralized exchanges charge double that, and sometimes even more especially if they accept PayPal.


Even though decentralized exchanges are expensive, they are your best option if you want to use PayPal to fund your Bitcoin purchase. The two best-decentralized cryptocurrency exchanges on the market now are LocalBitcoins and Paxful.


Related: How to buy Bitcoin and Ethereum instantly in the UK





LocalBitcoins is one of the oldest and largest decentralized cryptocurrency exchanges. Though the LocalBitcoins interface looks confusing at first glance, the way it works is actually pretty simple. To find Bitcoin sellers that accept PayPal, first pick a fiat currency. Then, click the All online offers menu bar and change the filter to PayPal.


Currently, there are only a few LocalBitcoin sellers in the that will accept PayPal payments. The least expensive sellers charge 8% more than the current market price for Bitcoin. That’s double the fees that you’ll pay if you buy Bitcoin through Vimba. Moreover, the sellers that do accept PayPal payments only let you make small Bitcoin purchases.


If you do decide to use LocalBitcoins to buy Bitcoin with PayPal, be sure to read your prospective merchant’s profile first before you get in touch. Different LocalBitcoins sellers have different identification requirements. Look for LocalBitcoins sellers that have good ratings and have completed many successful transactions.





Paxful is the second most popular decentralized exchange after LocalBitcoins. Its interface is somewhat more intuitive, but the core features are all the same. To find Paxful sellers that accept PayPal payments, first select the currency that you want to use. Then, click Select a way to pay and choose PayPal.


At the moment, there are even fewer sellers that accept PayPal payments on Paxful than there is on LocalBitcoins. The ones that do accept PayPal charge even more in fees and only let you buy a few hundred dollars’ worth of Bitcoin. The least expensive offer for Bitcoin on Paxful is over 17% above the going market rate.


As is the case with LocalBitcoins, each Paxful seller has a profile. You should read the information contained in the profile first before you do business with any Paxful seller to find out how they want to conduct the transaction.





VirWox-- an exchange for trading video game currencies is one of the few exchanges in the world that will let you buy Bitcoin with PayPal. However, you’ll have to go through multiple steps and pay steep fees to do so. To get Bitcoin, you have to first buy Linden dollars-- the digital currency used in the virtual world game Second Life. Once you have some Linden, you can exchange your Linden for Bitcoin. Each time you initiate a transaction, you’ll pay a 3.9% fee. There’s an additional 0.0005 BTC fee for withdrawing Bitcoin.


In addition to the high fees, another issue with VirWox is that it’s not user-friendly at all. The site was created back in 2007, and it hasn’t changed much over the last 12 years. Moreover, the administrators of VirWox are known to refuse some types of Bitcoin withdrawal requests. If VirWox declines to process your Bitcoin withdraw, you’ll get a PayPal refund instead.


Vimba: a cheaper, easier way to buy Bitcoin

Using PayPal to buy Bitcoin is more hassle than it’s worth. PayPal’s seller protection feature doesn’t cover digital currencies. As a result, none of the major cryptocurrency exchanges is willing to accept PayPal payments.


A better way to get started in cryptocurrency is by opening an account with Vimba. We offer the first four savings transactions for free, great customer service, a user-friendly interface and a unique cryptocurrency savings feature that lets you harvest the benefits of DCA (Dollar Cost Averaging). With DCA, you can minimize investment risks by purchasing small amounts of Bitcoin over a long period of time. Learn more about the benefits of Dollar-Cost Averaging at our blog, or sign up for a Vimba account and take a tour of our interface today.