PayPal, the online payment system owned by auction site eBay, which has some 30 million users, has opened a UK web site and office.

UK businesses trading online may find that PayPal is a cheap alternative to other online payment systems, particularly if they take multiple, small payments. PayPal's move into the UK also shows the growing trend of tailoring sites for local users.

Scott Braunstein, UK Country Manager for PayPal, commented, "We are showing the commitment we have to our UK users." Braunstein explained that most non-US PayPal users live in the UK. "A lot of people are trusting PayPal with their money, they feel a lot more comfortable dealing with a site that is tailored to their specific culture," Braunstein added.

There are good logistical reasons for a UK site and office, said Braunstein.

"A lot of features need to be localised. We need to tap into third-party systems for our back-end customer authentication, and we need to be able to track ordering systems and ensure that firms qualify for Seller Protection (a programme that offers fraud protection for merchants)." The company is offering attractive rates for buyers and sellers, and for withdrawals from UK banks.

Braunstein said that where before it would cost 50p to withdraw sums of under £50 it will now cost 25p, while withdrawals over £50 are free.

Braunstein said these low rates are made possible by PayPal's presence in the UK. He said that PayPal planned to leave the rates as they are, adding, "We are losing money on this, but see this as necessary for providing a better service."