Paypal Considering a 2% or 2.5% Cashback Credit Card [Speculation]

As an eBay Mastercard holder, I was sent an email to participate in a survey regarding the Paypal Extras Mastercard, sister-card of the eBay Mastercard. I have literally no idea why I clicked on it – probably mostly to vent about the fact that I can’t take advantage of the $15 eBay offer going on now due to my frozen Paypal account – but the survery was most interesting.

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I wasn’t told anywhere in the survery that the details can’t be shared and I’m therefore assuming they are okay with that.

It was an extremely long survey; a lot of it was clearly psychological ploys to see how different wordings effect the card appeal, but a recurring theme in the survey was a serious consideration for the Paypal Extras Mastercard to become a no-annual-fee 2% cashback credit card with the cashback being automatically deposited into your Paypal account after each statement closes. The cashback can then be transfered to your bank account or used to pay the credit card bill or used to shop online with Paypal.

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This was one of many options shown

At one point, there was a screen which suggested that for each $1.00 in cashback earned, you’d get $1.25 when having it deposted to Paypal (apparently there would be another option to redeem as a statement credit or into your bank account).

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That sounds too good to be true as it would mean that the card would be a 2.5% everywhere card. It sounds more reasonable to give a 10% bonus for depositing into Paypal or some other small amount. Unless the marketing folks win, I doubt this one will happen, but maybe it could happen at a lower rate, e.g. $1.10 for each $1 in rewards. This would make the card a 2.2% rewards card which would be awesome!

Another interesting thing in the survey was a few mentions of a card that earns 5x or 5% on Paypal purchases. This idea wasn’t as recurrent as the 2%, but it came up a few times. (This would not be together with 2% everywhere, rather instead of it.) Many other mentions suggested 3x or 3% for Paypal purchases. There was also a 5% everywhere offer mentioned, but I assume that one wasn’t serious; probably just to make sure you are a serious participant in the survey.

There were lots of other things discussed, such as making specific categories bonused, groceries to gas and everything in between was brought up.

At one point, they summed up the – apparent – main options and asked for my opinion as to which is best.

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My response? “…if you guys could get your act together and let people live, I’d love to use the card”.

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(As an aside, I’ll hazard a guess that this Reddit banker is working for Paypal/Synchrony, see also this  post.)

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19 Comments
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Mark Zhang
Mark Zhang (@guest_207986)
December 11, 2015 17:14

I got this survey too!!! Well… should I feel good or bad? I guess it was also because I did not get that recent offer for my ebay card.

So since I have read DoC’s post here previously, I did the survey very attentively and really hope they could combine the 2% plus 1.25 redemption feature. Well, who knows. Can’t wait to see if I made a contribution to the release of this mysterious card!!

Presley
Presley (@guest_205431)
December 3, 2015 22:41

I only use paypal to receive payments and because ebay requires it for using ebay gift cards. But it is so hard to use paypal on ebay. I get errors a lot. So, this is great news if it happens, but I do not like paypal.

NoonRadar
NoonRadar (@guest_205389)
December 3, 2015 20:35

As soon as I started to read this post I thought that the Reddit banker (linked post at the end) was talking about this.

I’m now also thinking that the PayPal employee what took audience questions from the Frequent Miler was not acting without his company’s consent, it was probably a company directive.

Which, if true, makes this an interesting twist; the MS-infamous PayPal is now reaching out to the MS (manufactured spending) community for ideas and marketing. Are they being innovative or just desperate for market share? If desperate, what gives, anyone follows their financial numbers to see if they are loosing business/money?

NoonRadar
NoonRadar (@guest_205643)
December 4, 2015 13:37

I don’t think they overtly did. In fact many of us commenting on the initial blog post at FM were concerned that the rouge PayPal employee would get in trouble and suggested FM remove part of the email he had received from said PayPal employee, so PayPal couldn’t identify her/him. Which FM did.

At that point I’m sure FM and the rest of us were thinking this was an employee acting on their own, taking risks while doing so, since they provided a lot of context which could identify them internally at PayPal, being they claimed they still worked there. Looking back at it now, after these other pieces of (yet not verified) info, I just think it was more likely that said employee was doing that with PayPal’s approval, likely as part of their job/project, rather than on their own and rouge.

Mark Zhang
Mark Zhang (@guest_205295)
December 3, 2015 16:40

A probably stupid question here.. Will you be eligible for multiple credit account/cards while holding only one PayPal account? My friend applied for the PayPal credit and was rejected for eBay MasterCard application; I got the eBay MasterCard and later notified as not eligible when I clicked on the link for PayPal Extras.

Mark Zhang
Mark Zhang (@guest_205294)
December 3, 2015 16:40

A probably stupid question here.. Will you be eligible for multiple credit account/card while holding only one PayPal account? My friend applied for the PayPal credit and was rejected for eBay MasterCard application; I got the eBay MasterCard and later notified as not eligible when I clicked on the link for PayPal Extras.

projectx
projectx (@guest_205199)
December 3, 2015 12:16

Crap. I was just shut down by PayPal because I read this post.

Michael
Michael (@guest_205218)
December 3, 2015 13:29

Zing! This post has a comedic tilt to it! 🙂

projectx
projectx (@guest_205241)
December 3, 2015 14:31

Lol. I hope that didn’t come off as a shot at the DoC… my aim was at PayPal’s ridiculousness.

Michael
Michael (@guest_205244)
December 3, 2015 14:38

I like your comment and the DofC’s aside about the banker polling Reddit for product suggestions. Both great!

Red
Red (@guest_205179)
December 3, 2015 10:47

“Another interesting thing in the survey was a few mentions of a card that earns 5x or 5% on Paypal purchases.”

How is this possible? The whole point of PayPal is that it’s like a bank-light that is a preferred payment method. Paying with PayPal will always prefer and default to your PayPal balance and backup with a real bank account over ACH, you have to jump through hoops to pay with a CC. This saves them a lot of money in card processing fees.

If they offered 5%, wouldn’t they be losing both their cut from the seller (~2.9%) and their homebuilt advantage over swipe fees by discouraging payment with CC? They’d still owe some money to Visa or MC.

Phong
Phong (@guest_205154)
December 3, 2015 09:08

Interesting. Most surveys I for money have a whole privacy clause. Furthermore, why not. Other companies already do 2% and even a 5% cashback card (ink). Obviously I’d be more reluctant to apply for it because of all the possible problems with Paypal. It does make it more lucrative and worth a thought if they make it higher than 2.0/2.2/2.5 though.

joE
joE (@guest_205149)
December 3, 2015 08:53

Even if paypal comes out with a 10% cashback card, there is nothing to get excited about as it won’t be long before they deny your transactions and freeze your account due to their overly sensitive fraud system.

Thanks but no thanks. Did you have chance to name the card?

Introducing the “Lipstick on a Pig” credit card by Paypal!

Daniel
Daniel (@guest_205224)
December 3, 2015 13:39

This times 1000. It’s just not worth it when it comes to PayPal, I think.