PayPal to Offer Credit Card With 2% Cash Back

As most consumers prefer reward credit cards that give money back, PayPal plans to roll out credit card with 2% cash rebate to compete as the best cash back card on the market. Bloomberg reported:

“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 Inc., Visa Inc. and JPMorgan Chase & Co., looking to make PayPal ubiquitous in the lives of its 210 million customers. The company already tested the card with some of them.”

Currently on the market, you can get 2% cash back credit card from Fidelity Rewards Visa and Citi Double Cash. Now PayPal’s credit card will be another option for consumers to use in brick-and-mortar stores.