PayPal Introduces Its First Cash-Back Credit Card
As a part of its bid to move beyond a digital payment service, PayPal introduced its first cash-back credit card, the PayPal Cashback Mastercard, which it will release in conjunction with Synchrony Financial.
The card offers 2% cash back on purchases and requires no annual fee. The rewards will appear in a user’s online wallet immediately and can be spent on PayPal purchases or transferred to a bank. There are no restrictions on how to spend the rewards, no expiration and no minimum redemption amount.
Only PayPal members can apply, and the card will be added to their digital wallet as soon as they are approved. So cardholders can use their card before they even receive the physical card in the mail.
In addition to these perks from PayPal, users will also enjoy the following Mastercard benefits:
- An extended warranty, which will double the original store brand or manufacturer’s warranty for up to one year
- Price protection for 60 days
- Identity theft protection
- EMV Chip Technology
The company hopes the 210 million PayPal users will start to use the service to shop in brick-and-mortar stores. Recent research indicates customers have the highest satisfaction levels when their credit card offers cash back rewards.
“You’re going to see an increased focus on cash-back efforts,” said Curtis Howse, senior vice president of Synchrony’s diversified client group. “That’s something we’ve been able to do—as a first here—with this partnership.”
Just last week, PayPal became available as a payment option for Nintendo eShop purchases.
About Bill Hardekopf
Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.