PayPal, one of the most famous online payment operators just announced a new cash back credit card that will offer 2% on all purchases. And yes, we mean all purchases, not just those make through PayPal, according to MarketWatch, citing a report issued by the company this week.
We’re talking about PayPal Cashback Mastercard, issued through Synchrony bank and available just for customers who have a PayPal account. The good part is that there’s no annual fee for it!
Not a premiere for PayPal
However, it’s worth mentioning that this isn’t the first time PayPal issues a credit card. Even since 2006, they have been offering another card, through the same bank, offering various rewards, but none of the were as tempting as the new ones.
Speaking about tempting offers, the card’s new 2% cashback policy is significanlty generous, compared to the rates offered by other cashback cards, which are no more than 1.5%.
When it comes to redeeming the rewards, the process is very simple, as cardholders will receive them directly into their PayPal accounts.
“Consumers are looking for simple, straightforward redemptions and that’s something this card delivers,” said Zach Honig, editor in chief of The Points Guy.
Currently, there are quite a few similar cards available on the market, but most of them offer less than 2% back. Specifically, the closest comparison to PayPal’s new card is the Citi Double Cash card, offering 1% on each purchase, as well as an additional 1%, when consumers pay with their balance, hence equaling the 2%. And it also has no annual fee!
There are downsizes as well
As for the negative aspects of the new cashback card, we must mention the lack of a sign-up bonus and 0% introductory period, which somehow forces consumers to avoid gathering interest on the purchases they make.
And we’re not done yet, since there’s a very high annual percentage rate, of 16.99%, 24.99% or 27.99%, depending on your credit as a consumer. Keeping it short, it shouldn’t be a great choice for somebody who doesn’t pay their balance monthly!
Finally, the card charges foreign transaction fees, but these could be removed in the future, according to one of PayPal’s spokesmen.