PayPal on Xbox Live allows users to purchase Microsoft Points without having to associate their credit card information to their Xbox Live account. However, the service can only be used to purchase Microsoft Points through Xbox.com, and so not via the console itself. Multiple PayPal accounts can be linked to a single Xbox Live account.
Microsoft has opted to introduce the online payment method ahead of the August 11 rollout of its new Games On Demand service, which will offer a range of downloadable catalogue Xbox 360 titles priced at 1600-2400 MS Points ($19.99-$29.99 / £13.60-£20.40).
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1i recently heard about a new online payment option called pci compliance. it charges less for the online transactions, so you can save money.