25 September 2017
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PayPal rolls out cashback credit card

30 August 2017  |  14162 views  |  8 paypal credit card

PayPal has come up with a novel new weapon to help it take over the high street - an old-fashioned plastic credit card.

The digital payments pioneer has teamed up with Synchrony Financial on the Mastercard card, which will offer two per cent cashback on every online and instore purchase, with no annual limit, no minimum redemption amount, no restriction on how to spend rewards and no expiration.

Darrell Esch, VP commercial officer, global credit, says that trials of the card have shown that customers are using PayPal more not only in stores but also online.

Says Esch: "Our goal is to provide our customers choice and flexibility in how they pay when making purchases - whether online or in store. The PayPal Cashback Mastercard provides our customers with another innovative consumer credit option, making the payment experience seamless for each customer’s unique lifestyle."

Comments: (8)

Ian Pettigrew
Ian Pettigrew - HSBC Bank Middle East Ltf=d - Dubai | 30 August, 2017, 15:04

HSBC have been offering a cash back credit card in the UAE for a while now

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Srilakshmi Parasumannah Amarnath
Srilakshmi Parasumannah Amarnath - ING Bank BE - Brussels | 30 August, 2017, 15:40 Where will this cash back credit cards be rolled out? Asia, Europe?
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Melvin Haskins
Melvin Haskins - Haston International Limited - | 30 August, 2017, 15:53

Cash back credit cards are available in the UK - the John Lewis credit card (managed by HSBC) has been offering it for more than five years. Nationwide also introduced it several years ago. However, both offer 0.5%. If PayPal offer 2% it is a significant reward.

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Matt White
Matt White - Finextra - Toronto | 30 August, 2017, 16:09

@ Srilakshmi - US

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Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 30 August, 2017, 17:46

2% cashback and no expiration of rewards - two signs of a killer credit card. 

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Evita Periklaki
Evita Periklaki - Euronet Worldwide - Athens | 31 August, 2017, 13:34

How can a 2% reward be funded? 0,5% seems plausible, with interchange 0,3%. 2% however will kill the product's profitability and possibly also the market for credit cards with rewards.

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Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 31 August, 2017, 16:02

@EvitaPeriklaki: Per @MattWhite's comment, this card is launched in USA, where credit interchange is 2-3%.

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A Finextra member
A Finextra member | 04 September, 2017, 16:10

So what is it? A MasterCard attracting Mastercard interchange fees? A PayPal card, acceptance of which merchants can negotiate directly? or just another wheeze that ensures acceptance of PayPal, using the Mastercard brand, within merchants who don't currently accept or don't want to accept PayPal?

Or is this is just another example of merchants funding card issuer rewards, which creates a potentially costly cycle for merchants while increasing PayPal's market reach and share?

 

 

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