PayPal introduces a 2 percent cash back credit card for PayPal account holders. This new card is in partnership with Synchrony Financial, who is the largest private label credit card issuer in the U.S.
In 2014, Synchrony Financial, or previously known as GE Capital Bank before its spin off from GE Capital in 2014, serviced almost 42 percent of the private label credit card market.
If you have a gas or store card, you likely already are dealing with Synchrony Financial product.
Also, if you own a PayPal Extras Mastercard, that is serviced by Synchrony Financial as well. Expect the integration between PayPal and the PayPal Extras Mastercard to be the same for the cash back card.
The company stated that you can only have one card product, either the PayPal Cashback Mastercard or the PayPal Extras Mastercard, per PayPal account. No information was provided if or how a user could switch from one to another.
The PayPal Extras Mastercard uses a points and rewards system, instead of cash back. Sometimes the credit requirements can be different between cash back cards and rewards cards.
For the new card, a personal credit check is required. And creditworthiness is based on your personal credit score to obtain the Mastercard.
The PayPal Cashback Mastercard is a consumer product, so even a PayPal business account will require a personal credit check.
2 PERCENT CASH BACK ON EVERYTHING
Like the PayPal debit card that currently offers unlimited 1 percent cash back on purchases, the PayPal Cashback Mastercard also offers unlimited cash back.
Long time PayPal business debit card users may find value in this new card offer. With 2 percent cash back, the new card doubles the cash back value over the debit card product.
Some years back, the PayPal debit card offered a 1.5 percent cash back on purchases. But even most grandfathered accounts were recently cut back to 1 percent.
For more information, PayPal created an information page for the PayPal Cashback Mastercard, and you can find it here.
What do you think of this new offer from PayPal. Will you take advantage of the better cash back credit card? Let us know in the comments section below.