Today PayPal is introducing a new credit card, PayPal Cashback Mastercard, which offers two percent cash back on every online and in-store purchase. Although this is not the only credit card that PayPal is offering now, it’s the first one to provide customers direct cash back instead of points.
PayPal Cashback Mastercard has no annual fee, no restrictions on the type of purchases you can make to earn cash back, and no minimum redemption amount. That means cardholders can earn 2% cash rewards from every eligible purchase, and redeem them directly into your PayPal balance at any time. Overall, it’s one of the industry’s highest rebate rates — with no annual fee.
The digital payments pioneer partners with Synchrony Financial to issue the MasterCard. Therefore, the card also comes with standard MasterCard benefits like extended warranty coverage, 60-day price protection, and identity theft resolution.
To apply for a PayPal Cashback Mastercard, you must have a PayPal account. Once approved, it will be automatically added to your PayPal account, and you can start using the card right away even before the physical card arrives in the mail. Besides, the company mentions that your PayPal account should be in good standing to earn cash rewards.
Simply put, the move to launch a cash back card is to boost PayPal usage in physical stores. In the second quarter of 2017, more than 210 million PayPal accounts were active worldwide. However, mobile payments alternatives like Apple Pay, Android Pay and Samsung Pay are making strides today. The total users of above three largest mobile wallets are expected to 150 million by the end of the year. So this move is also a part of PayPal’s rapidly evolving strategy to raise its traction at point-of-sale.