PayPal creates new digital interface for credit card
The new PayPal Cashback credit card offers users an enhanced desktop and mobile experience.
The card, issued by Synchrony, gives customers unlimited 3% cashback when paying with PayPal at online, mobile, or in-store checkout, including via PayPal QR Code where eligible. Customers will additionally receive unlimited 2% cashback on all other purchases with the card anywhere Mastercard is accepted.
The PayPal Cashback credit card also offers customers a new user interface within the PayPal app and on the web. The interface is designed to deliver a simplified and more integrated way for customers to gain access to rewards, manage purchases, and make payments.
Card users are provided access to their rewards every day, without having to wait for a monthly statement cycle. Based on their account type, customers can choose how to use the rewards. This can include making statement payments, making purchases from eligible retailers, or transferring funds to a linked bank account or debit card.
Existing eligible PayPal 2% Cashback credit cardholders will automatically be upgraded into the new 3% cashback card structure and can start earning higher cashback rewards whenever they use their card to check out with PayPal.
For a limited time, new card customers will earn a one-time $100 cashback bonus on their first $500 spent. In addition, the new card has no annual fee, no category restrictions, and can be added to a customer's PayPal wallet for fast, secure digital checkout.
The new PayPal Cashback credit card will soon be available to select customers who can apply through the PayPal app and website. PayPal will continue to roll the card out in the coming weeks.
PayPal is rolling out a new credit card with enhanced digital features as more players are entering the payment card space. For example, Instacart recently began offering a credit card, while Klarna has opened the waitlist for its first U.S. physical payment card.
And in 2019, Apple launched its alternative to traditional credit cards — the no-fee Apple Card. The Apple Card is built into the Apple Wallet app on iPhone, connecting it to the Apple Pay digital payment service and providing users the ability to manage their card on their phone. Now, the tech giant plans to introduce a mobile payment feature, called “Tap to Pay on iPhone,” that will enable retailers of all sizes to use an iPhone to accept Apple Pay, contactless credit and debit cards, and other digital wallets through a tap to their iPhone, with no additional hardware or payment terminal needed.
"Our customers shopped across 34 different categories last year showcasing the diversity of their needs and interests, and we wanted to build a credit product that was flexible and better matched rewards with their spending behaviors," said Susan Schmidt, VP consumer credit, PayPal. "The new PayPal Cashback credit card was designed so PayPal customers can earn rewards and get cashback for everyday purchases no matter what categories they spend in that month."
"Together with PayPal, we continue to build on the seamless integration that has been a hallmark of our partnership, allowing us to enhance rewards to our customers and improve 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."