With airline miles becoming less valuable and more complicated to use for the average consumer, more people are turning to cashback cards than ever before. While this card has been around on a targeted basis for a while, today the PayPal Cashback Mastercard became publicly available.
The card has no annual fee and also has no sign-up bonus, and is really straightforward. You earn 2% cashback on all purchases, and the balance is deposited directly into your PayPal account (and can then be transferred to your checking account if you’d like). There’s no minimum or maximum in terms of the cash back you can earn, and the card has 3% foreign transaction fees.
The card is issued by Synchrony Bank, which is the same issuer as Cathay Pacific’s new US co-branded credit card. In general Synchrony cards are pretty easy to be approved for, though they’re also notorious for only offering small credit limits. Don’t be surprised if you apply for the card and get a credit limit that’s significantly smaller than the limit offered on most other cards.
I’ve written in the past about the Citi® Double Cash Card, which offers unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. So in terms of the rewards structure, these cards are very similar, as both have no annual fee and no sign-up bonus. The one advantage of the PayPal Card is that there’s no minimum to the cashback you can earn, while with the Citi Double Cash Card you can only earn cashback if you’ve accrued at least $25 in rewards.
As I mentioned above, the card has been available on a targeted basis for a while, and Bloomberg ran a story today about the positive results they’ve seen from cardmembers so far:
“Not only are they using us to shop outside of PayPal in the physical world, but they’re also shopping more on PayPal with this card,” said Darrell Esch, chief commercial officer for global credit at the San Jose, California-based company. Some customers began checking the balance in their digital wallets more often, leading to additional shopping online.
By the end of June, before the card’s full rollout, transactions per PayPal account rose 10 percent to 32.3 over the trailing 12 months, according to a statement from the company.
For those of us who maximize points earning cards, this card probably isn’t worth acquiring. However, for those who like cashback cards, this is yet another good 2% cashback card to consider.