PayPal Muscles In On BNPL, Credit Cards
Internet payments giant PayPal is taking on Afterpay and traditional banks with not only a BNPL-style “pay in 4” option, but physical credit cards; this is despite a 29 per cent year-on-year drop in the value of goods being bought on credit.
As reported in the Australian Financial Review this morning, PayPal – which recently formalised its divorce from eBay, no longer processing payments to sellers by default – is launching two credit cards through Mastercard: the PayPal Cashback Mastercard, which offers cash rewards redeemable to PayPal balance, and the PayPal Extras Mastercard, with points rewards. Each has no annual fee.
Alongside its credit cards, PayPal is launching a pair of debit cards – the PayPal Cash Mastercard and PayPal Prepaid Mastercard – as well as “Pay In 4”, an option similar to the offering by Afterpay, which allows customers to pay in four interest-free instalments, two weeks apart.
PayPal has 9.1 million active users in Australia.