PSA: PayPal now works for purchases on Xbox.com
If using a credit card online rubs you the wrong way -- or your extreme laziness prevents you from leaving your home to purchase a points card -- PayPal can now be used to buy Microsoft Points on Xbox.com. There are a few caveats to the new option, however: The new payment method is only available to US residents and will only work through Xbox.com (not your actual console).
Users can attach multiple PayPal accounts to their Gamertags and purchase points, which can then be used to purchase content -- like (the insanely priced) Xbox 360 Games on Demand titles. To add a PayPal account, follow these easy steps:
Sign in to Xbox.com
Direct your browser to the Account Summary page
Select "Manage Payment Option"
Click "Add a new PayPal Account" and follow the onscreen instructions.
Your virtual wallet will be filled with Microsoft Funny Money in no time!