Today, PayPal is launching a new credit card, the “PayPal Cashback MasterCard” which is its first card to offer customers direct cashback instead of points that vary by category on purchase. The card introduced in partnership with Synchrony Financial and will offer 2% cashback on purchase with minimum redemption amount, no annual fee, no restrictions on how to spend the cash rewards. The company says this card is also available with no expiration.
It will also include standard MasterCard benefits like purchase protection, extended warranty coverage and identity theft resolution assistance with security protection from PayPal. PayPal purchases will receive PayPal Purchase Protection without any additional cost.
The card is only available for PayPal members. Once approved, it is automatically added to user’s PayPal’s wallet which means consumers can start using the card even before it arrives in the mail. This is not the only credit card that PayPal offers, but it may become the most compelling in a short period of time.
Other cards include a PayPal Extras MasterCard for customers. It uses a traditional 3-2-1 rewards points system where you can earn more points. Ebay (which spun off from PayPal in 2015) has a similar card that is still managed by PayPal.
The move to provide a cashback card is a part of PayPal’s strategy to increase its traction where other mobile payments like Apple Pay, Samsung Pay and Android Pay are getting down. PayPal has more than 210 million users today. Seeing this we hope this new cashback card will help with larger agenda to increase PayPal use in stores and online.
A company spokesperson explains, “Cardholders can manage their accounts, redeem Cash Rewards and make payments by logging into their Pay”.
The spokesperson noted, “Early results show that PayPal customers with a PayPal credit card log in to the PayPal mobile app and PayPal.com three times more often than before getting the card, creating more opportunities for engagement”.