PayPal Expands US Point-of-Sale with 5% Cashback and Apple Wallet Integration

PayPal is expanding its reach into US point-of-sale payments
by integrating its debit card with Apple’s mobile wallet and offering 5%
cashback rewards. This move aims to position PayPal directly against tech
companies and banks.

Shifting to In-Person Payments

Under the leadership of new CEO Alex Chriss, who joined from
Intuit last year, PayPal is shifting focus from its traditional online and
peer-to-peer payment services to in-person transactions.

The company’s debit
card now provides 5% cash back on selected purchases, with a limit of $1,000
per month. Additional rewards are available through partnerships with brands
like DoorDash and Sephora.

“E-commerce has obviously been one of the fastest
growing areas where people are spending their dollars… but it’s not
everything,” Chriss said. “Now consumers can use PayPal for every
purchase, everywhere, every time.”

Mobile Payments Competition Intensifies

The US debit card payment market has grown significantly,
reaching $4.55 trillion in 2021, up from $2.47 trillion in 2015, according to
Federal Reserve data. Chriss noted that as consumers become more
cost-conscious, they are increasingly turning to debit cards to manage
spending.

PayPal’s debit card will also support Apple Pay, allowing
users to utilize mobile wallets and “tap to pay” features. The 5%
cash-back offer makes PayPal’s debit card competitive, as only 24% of debit
cardholders earned cashback rewards in 2023, compared to 74% of credit
cardholders, according to Valuedynamx.

Despite PayPal’s historical dominance in online payments ,
competition from Apple and Google has intensified in the mobile payments
sector, impacting PayPal’s market share.

PayPal is expanding its reach into US point-of-sale payments
by integrating its debit card with Apple’s mobile wallet and offering 5%
cashback rewards. This move aims to position PayPal directly against tech
companies and banks.

Shifting to In-Person Payments

Under the leadership of new CEO Alex Chriss, who joined from
Intuit last year, PayPal is shifting focus from its traditional online and
peer-to-peer payment services to in-person transactions.

The company’s debit
card now provides 5% cash back on selected purchases, with a limit of $1,000
per month. Additional rewards are available through partnerships with brands
like DoorDash and Sephora.

“E-commerce has obviously been one of the fastest
growing areas where people are spending their dollars… but it’s not
everything,” Chriss said. “Now consumers can use PayPal for every
purchase, everywhere, every time.”

Mobile Payments Competition Intensifies

The US debit card payment market has grown significantly,
reaching $4.55 trillion in 2021, up from $2.47 trillion in 2015, according to
Federal Reserve data. Chriss noted that as consumers become more
cost-conscious, they are increasingly turning to debit cards to manage
spending.

PayPal’s debit card will also support Apple Pay, allowing
users to utilize mobile wallets and “tap to pay” features. The 5%
cash-back offer makes PayPal’s debit card competitive, as only 24% of debit
cardholders earned cashback rewards in 2023, compared to 74% of credit
cardholders, according to Valuedynamx.

Despite PayPal’s historical dominance in online payments ,
competition from Apple and Google has intensified in the mobile payments
sector, impacting PayPal’s market share.

This post is originally published on FINANCEMAGNATES.

  • Related Posts

    INFINOX Sponsors Porsche Cup Brazil Following Casagrande’s Appointment as Brand Ambassador

    INFINOX has partnered with Acelerador Racing to sponsor its car in the Porsche Cup Brazil 2025. The brokerage’s logo will be displayed on the top hood and upper door of…

    TradingView Brings Charts to Telegram in New App Powered by TON Blockchain

    As the adoption of mobile apps grows, especially among young traders, TradingView has launched a mini app on Telegram that allows users to monitor market trends, track price movements, and…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    What Are Liquidity Zones in Forex and How Do Banks Use Them?

    • April 2, 2025
    What Are Liquidity Zones in Forex and How Do Banks Use Them?

    INFINOX Sponsors Porsche Cup Brazil Following Casagrande’s Appointment as Brand Ambassador

    • April 2, 2025
    INFINOX Sponsors Porsche Cup Brazil Following Casagrande’s Appointment as Brand Ambassador

    TradingView Brings Charts to Telegram in New App Powered by TON Blockchain

    • April 2, 2025
    TradingView Brings Charts to Telegram in New App Powered by TON Blockchain

    Brazilian Real to Benefit From Trade War. Forecast as of 02.04.2025

    • April 2, 2025
    Brazilian Real to Benefit From Trade War. Forecast as of 02.04.2025