If you want to use your credit or debit card to pay for only your Xbox Live subscription, you can choose to use your PayPal account to add Microsoft Points to your account. You can use Microsoft Points to download items from the Xbox Live marketplace, such as games and movies. You can only use PayPal to add Microsoft Points, and you can only do so through the official Xbox website; you cannot use PayPal through the Xbox console.
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Visit Xbox.com. Click "Sign in" and enter your Xbox Live login information.
Mouse over "My Xbox" and click "Accounts." Click "Edit Payment Options."
Choose to "Add a New PayPal account." Click "Next." Enter a name for your PayPal payment option, such as "PayPal Payment 1." Click "Next." You will be redirected to PayPal's page.
Sign into your PayPal account using your e-mail address and password. Click "Agree and Continue." PayPal will authorise the payment option and redirect you back to Xbox.com. You will see your PayPal payment option listed in the middle of the screen.
Navigate to the "Accounts" page again. Click "Add Microsoft Points" under "Marketplace." Choose how many points you wish to add and select your PayPal account as the account you wish to charge. Click "Next," and Microsoft will award you the points and charge your account.
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