With the integration of its debit card with Apple Pay and its alluring 5% cashback benefits, PayPal is turning heads in the US point-of-sale sector.
Alex Chriss, President and CEO of PayPal, confirmed the development in a press release seen by Newsng on Thursday.
Newsng gathered that PayPal Debit Card users may now choose a monthly spending category, such as clothes, gas, or groceries, and earn five per cent cash back on up to $1,000 in purchases made in that category each month. It is possible to stack many cash-back programs.
The scheme is a component of a larger turnaround effort spearheaded by Alex Chriss, the company’s new CEO who joined Intuit last year.
Even though PayPal is a market leader in peer-to-peer and online payments via the Venmo app, the company has not historically prioritized in-person transactions.
Chriss noted, “E-commerce has obviously been one of the fastest-growing areas for consumer spending, but it’s not everything. Now, consumers can use PayPal for every purchase, everywhere, every time.”
The Federal Reserve reported that the US debit card payment sector has experienced tremendous growth, with transactions reaching $4.55 trillion in 2021 from $2.47 trillion in 2015.
In 2023, only 24% of debit cardholders received cashback benefits, even though consumers are choosing debit cards more and more to better manage their spending.
With the added convenience of Apple Pay integration, PayPal’s most recent approach may capture a sizable portion of this market, increasing the attraction and competitiveness of its debit cards.
“We’re excited to work with PayPal to bring Apple Pay to PayPal Debit Card cardholders and help deliver a seamless shopping experience to even more users,” said Eddy Cue, Senior Vice President of Services at Apple.
“Whether in-store, online or in-apps, PayPal debit card cardholders will be able to enjoy the convenience and security that Apple Pay brings to their everyday lives.”
We earlier reported that PayPal has named Srini Venkatesan, a former executive of Walmart’s U.S. Omni Platforms and Tech department, as its chief technology officer (CTO).
