In a press release from August 30, PayPal announced its upcoming partnership with Synchrony Financial in an effort to release the new PayPal Cashback MasterCard. The credit card deal would be an exclusive for PayPal customers, offering rewards for daily purchases and adding another dynamic to the PayPal service.
The Cashback MasterCard is not the first credit card offer form PayPal; however, it is the first to offer PayPal customers a chance to earn cash back rewards. The credit card offers a decent 2 percent cash back on all purchases made in person and online. There are no limits, minimums, or expirations on cash back earnings, and users can redeem these rewards towards PayPal transactions and other purposes.
On top of this news, the card comes with no annual fee, making it more worthwhile for the habitual PayPal user. Aside from cash back, the card offers typical MasterCard benefits which include customer service, identity theft protection, and more.
Despite no annual fee, card holders will still need to take into account the APR. The APRs established in July 2017 are variable and range from 16.99, 24.99, to 27.99 percent. Other typical MasterCard and Synchrony transaction fees still apply.
This latest move by PayPal is mainly a way to bolster its user base and improve user interaction and volume according to a spokesperson mentioned on TechCrunch. Apparently, users are much more active in PayPal when they have a matching credit card.
At any rate, this credit card is yet another cash back rewards product in the enormous credit card market. Consistent PayPal users could benefit from the card, but non-PayPal users who want the card will have to sign up for PayPal to start which happens to be one of the main incentives for establishing this new credit card offer.
Author: Andrew Rombach
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