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PayPal Debuts a Credit Card That Offers 2% Cash Back (bloomberg.com)

Posted by msmash on from the further-expansion dept.

PayPal is turning to its old nemesis, plastic, to help it expand beyond the digital realm. From a report: The online payments venture is introducing a credit card that offers customers 2 percent cash back on purchases -- one of the industry's highest rebate rates -- with no annual fee. The rewards will appear in users' online wallets and can be spent immediately on additional PayPal purchases or transferred to a bank. The move is part of Chief Executive Officer Dan Schulman's effort to transform PayPal from a payments button on websites into a versatile financial tool for everyday use, even in brick-and-mortar stores. He's forged 24 deals over the past 18 months with technology and financial companies including Apple, Visa and JPMorgan Chase, looking to make PayPal ubiquitous in the lives of its 210 million customers. The company already tested the card with some of them.

10 of 149 comments (clear)

  1. PayPal Seizes Financial Assets by thechemic · · Score: 5, Insightful

    With they way they unnecessarily seize the monetary assets of 100s of thousands of their customers, you're going to need the 2% cash back in order to justify your relationship with them.

    --
    Let's make like a bird... and get the flock outta here.
    1. Re:PayPal Seizes Financial Assets by Mitreya · · Score: 3, Interesting

      And they are still not a bank from any regulatory perspective (in US).

    2. Re:PayPal Seizes Financial Assets by edtice1559 · · Score: 4, Interesting

      Although this deserves the +5 (maybe Funny instead of Insightful), the vast majority of people who *pay* with Paypal have a great experience. It's the merchants who choose to accept Paypal that tend to have awful stories of not getting paid. I suspect that part of the reason, though, is that Paypal will accept merchants that Visa/MC would never take on as customers. Although Square seems to have managed to go after a similar market with a much better reputation.

  2. Do they still randomly confiscate your accounts? by sinij · · Score: 3, Insightful

    Do they still randomly confiscate contents of your accounts? I guess since this is a credit card product, now they will also have an ability to max the credit card for you.

  3. US news only by courteaudotbiz · · Score: 3, Informative

    Too bad this news is US only. I have a Canadian PayPal account and the page to sign up is not accessible.

    1. Re:US news only by hord · · Score: 3, Insightful

      Credit card companies provide convenience. I never have to worry about having the right amount of cash or dealing with change or stupid cashiers. Not to mention they scale to the internet and other transaction scenarios where cash is inconvenient or impossible. That's worth it to me. I think you'd also be surprised at a retailer's attitude in having a stable, audit-able, and secure transaction platform that doesn't require hiring security forces.

      Merchants also provide convenience. I mean you could just pick your items up on a dock for cheaper. Are you happy paying that middle man? What about the middle man that shipped the goods? Do you buy direct from the manufacturer? Why aren't you harvesting it yourself?

  4. Re:PayPal issues Credit Cards by xxxJonBoyxxx · · Score: 5, Interesting

    Not quite. From TFA:

    >> PayPal is working with Mastercard Inc. and lender Synchrony Financial, the largest issuer of private-label credit cards, on its offer.

  5. Re:Do the phishers also get 2% back? by enjar · · Score: 4, Funny

    When the son of the deposed king of Nigeria emails you directly, asking for help, you help! His father ran the freaking country! As for the girlfriend, she has been running into one immigration hassle after another, so things keep getting delayed. She's also had to deal with her sick parents and a number of other personal issues. But the money I send is worth a lot more over there, so it goes a lot farther and we should have it all sorted out in a few months when we can get together. It seems crazy that this has been going on for a year already, but we are making do with photos, email, texts and Skype for now. But with all that money I'm making off the Nigerians, it's no big deal to cover these minimal expenses for the woman who is my soul mate, I'm sure!

  6. another by buddyglass · · Score: 3, Informative

    CitiBank has one of these as well. You get 1% at the time of purchase and 1% when you pay down your balance:

    https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=citi-double-cash-credit-card

  7. Re: Do they still randomly confiscate your account by nehumanuscrede · · Score: 3, Informative

    Those of us that have first hand experience with PayPal's bullshit practices don't need to " get a grip ", we KNOW what PayPal does.

    Which is why we refuse to use it.

    One day you'll wake up to an email claiming your accounts have been frozen for ' security reasons ' and you'll begin the game of how to regain access to them.

    Assuming you can. I gave up after two years and just wrote the account off as a loss.

    Absolutely will not give them another dime by any means.

    Utilize their unregulated services at your own peril, but never claim you weren't warned.