PayPal is revamping its co-branded PayPal Cashback Mastercard credit card , issued by Synchrony, which offers users 3% cash back when they pay with PayPal, and 2% cash back on all other PayPal purchases. MasterCard.
The company said the higher rate can be used every time a customer pays with PayPal, even if they pay online, on mobile or even in-store using a PayPal QR code.
PayPal also reported that current cardholders will automatically move from the previous 2% cash back rate to 3% on their PayPal purchases. The card will also be made available to new customers through PayPal’s mobile app and website in the coming weeks.
Along with the cash back update, which is the key feature of the new card, PayPal says it has updated the user interface for card management within the app and on its website to make it easier for customers to access. to your rewards, manage your purchases and make payments.
Additionally, customers will now be able to access their rewards any day instead of waiting for a monthly statement cycle. They will also be able to choose how they want to use the rewards, including making purchases with statements, shopping at retail stores, or transferring funds to a linked bank account or debit card.
To attract more customers, PayPal is incentivizing customers with a $100 cash back bonus on the first $500 spent on the card, which has no annual fees.
This consumer-friendly credit card upgrade comes as PayPal faces increased competition from buy now, pay later (BNPL) companies in the e-commerce space.
For example, Afterpay partnered with Rakuten in December to enable shoppers to earn cash back rewards when they make installment purchases from participating merchants. In the same month, Affirm also launched its own Cash Back program , and Amazon offers its own cash back rewards that pay 3% on Amazon and Whole Foods purchases.
“Our customers shopped in 34 different categories last year, showing the diversity of their needs and interests, and we wanted to create a credit product that was flexible and better matched rewards with their spending behaviors. The new PayPal Cashback Credit Card was designed so PayPal customers can earn rewards and get cash back on everyday purchases, no matter what categories they spend in that month,” said Susan Schmidt, Vice President of Consumer Credit at PayPal.
This comes after announcing in February that fourth-quarter 2021 earnings were mixed, in which the payments company blamed issues like the eBay transition, inflation, supply chain issues and more for its more recent guidance. weak, revenue pressure and slower user growth, were not so good.
PayPal is facing a variety of competitors in both online and mobile payments, including the integrated mobile payment systems Apple Pay and Google Pay, the various BNPL companies, Amazon’s own checkout process, and peer-to-peer rivals like Cash App. and Zelle.