PayPal is relaunching its rewards-based Mastercard to include 3% cash back on all purchases where users check out with PayPal, as the company seeks top-of-wallet status through all shopping channels.
The new version of the card, issued by Synchrony Financial, will continue to offer 2% cash back on all purchases where PayPal is not a checkout option, and there is still no annual fee.
Existing customers will receive the new reward structure when it becomes available in the near future, and PayPal is offering new customers who join a waiting list a $100 bonus on their first $500 spent.
PayPal’s newest card encourages greater PayPal acceptance at stores.
The updated PayPal card shares some aspects of PayPal’s
Unlike many other popular cash-back rewards cards, PayPal's newest version doesn't give priority for spending in any particular merchandise category.
"Our customers shopped across 34 different categories last year showcasing the diversity of their needs and interests," Susan Schmidt, vice president of consumer credit at PayPal, said in a press release Tuesday.
The Apple Card, which launched in 2019, offers 3% cash back on Apple purchases, 2% back when customers check out using Apple Pay and 1% on all other purchases.
Brian Riley, director of credit advisory at Mercator Advisory Group, said PayPal's boosted rewards aren't a game changer in an environment where JPMorgan Chase offers 5% cash back with its cobranded
However, the use of a QR code as a payment option is an upgrade over an earlier method of typing a
"The QR code might help solve a longstanding issue for consumers who want to use PayPal at the point of sale; previously using a PayPal account at stores such as Home Depot was awkward and few clerks were able to explain how it works," Riley said.
