PayPal is renewing its co-branded PayPal Cashback Mastercard credit card issued by Synchrony, which now gives users 3% cashback when checking out with PayPal and 2% cash back on all other Mastercard purchases. The company says the higher rate can be used when a customer is paying with PayPal, even if they’re paying online, on mobile, or even in-store with a PayPal QR code.
The company notes that its existing cardholders will be automatically upgraded from the previous 2% cashback rate to 3% on their PayPal purchases. In the coming weeks, the card will also be made available to new customers via the PayPal mobile app and PayPal.com.
In addition to the cashback upgrade, the key feature of this new card, PayPal says it has updated the card management interface on its app and website to make it easier for customers to access their rewards, and manage their purchases and payments. Additionally, customers can now access their rewards every day instead of having to wait for a monthly billing cycle. And they can choose how to use rewards, e.g. B. to make purchases on account, shop at retailers, or transfer money to a linked bank account or debit card.
To encourage new signups, PayPal is offering customers a $100 cashback bonus on the first $500 spent on the card, with no annual fees.
The consumer-friendly improvement in credit cards comes as PayPal faces increasing competition from Buy now, pay later (BNPL) e-commerce companies. For example, Afterpay partnered with Rakuten in December to allow shoppers to earn cashback when they purchase installments from participating retailers. Affirm also launched its cash-back program that same month. And of course, retail giant Amazon offers its cash back rewards, which pay out 3% on purchases from Amazon and Whole Foods.
“Last year, our customers shopped across 34 different categories, demonstrating the diversity of their needs and interests, and we wanted to create a credit product that was flexible and more responsive to their spending habits,” said Susan Schmidt, VP of Consumer Credit at PayPal. in a statement. “The new PayPal Cashback credit card is designed to help PayPal customers earn rewards and cash back on everyday purchases, regardless of the categories they spend that month.”
PayPal’s news followed mixed fourth-quarter 2021 results announced in February, in which the payments company attributed issues like the eBay transition, inflation, supply chain issues, and more to weaker forecasts, revenue pressures, and slower user growth. But more broadly, PayPal faces several competitors in both online and mobile payments, including its integrated Apple Pay and Google Pay mobile payment systems, the various BNPL companies, Amazon’s checkout, and peer-to-peer – Competitors like Cash App and Zelle.
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Find out what’s new
The smarter way to pay with PayPal: With the PayPal Cashback credit card, customers can now pay with PayPal and get more rewards when they shop online, mobile, or in-store, where available.
Better App and Desktop Experience: The PayPal Cashback credit card offers customers a new user interface within the PayPal app and on the web that offers a simplified and more integrated way to access rewards, manage purchases, and make payments.
Easy Redeem & Earn Rewards: Not only can customers earn more cashback at the PayPal checkout, but they can also access rewards every day without having to wait for a monthly billing cycle. Based on the type of account, customers are free to choose how they want to use the rewards – whether it’s checking out bank statements, making purchases from millions of retailers, or transferring money to a linked bank account or debit card.
New Customer Cashback: New cardholders receive a one-time $100 cashback bonus on their first $5,003 spent for a limited time.
“Together with PayPal, we continue to build on the seamless integration that has been a hallmark of our partnership, enabling us to enhance customer rewards and the user experience,” said Bart Schaller, CEO of the digital platform at Synchrony. “Plus, it’s easy to use and manage – the new PayPal Cashback credit card is sure to be a customer favorite.”
Existing eligible PayPal 2% Cashback credit cardholders are automatically upgraded to the new 3% Cashback card structure and can earn higher cashback rewards when using their card to pay with PayPal. The new PayPal Cashback credit card will be available shortly to select customers who can sign up through the PayPal app and www.paypal.com and will be rolled out in the coming weeks. Visit www.paypal.com/cashback for more information.
PayPal has been at the forefront of the digital payments revolution for over 20 years. By using technology to make financial services and commerce easier, more affordable, and more secure, the PayPal platform enables more than 425 million consumers and merchants in more than 200 markets to participate and thrive in the global economy. Visit paypal.com for more information.
About the sync
Synchrony (NYSE: SYF) is a leading consumer financial services company. We offer a wide range of special financing programs as well as innovative consumer banking products for key industries including digital, retail, home, auto, travel, health, and pets. Synchrony enables our partners to increase sales and customer loyalty. We are one of the largest credit card issuers in the United States; We also offer co-branded products, personal loans, and consumer finance products for small and medium-sized businesses and healthcare providers. Synchrony is changing what’s possible through our digital capabilities, deep industry knowledge, actionable data insights, seamless customer experience, and tailored financing solutions. For more information, visit www.synchrony.com and Twitter: @Synchrony