PayPal has as we speak introduced it’s launching a brand new rewards bank card into the Australian market subsequent month.
The brand new bank card comes sizzling on the heels of PayPal’s new purchase now, pay later service additionally scheduled to kick off in a matter of weeks.
In contrast to latest new bank cards from NAB and CBA, which cost charges as an alternative of curiosity, this new PayPal card is concentrated on rewards, with no annual price and 20.99 per cent curiosity.
PayPal is becoming a member of a crowded bank card market. There are presently 69 suppliers on the RateCity database and nearly 40 per cent of those supply rewards playing cards.
| Rate of interest | Annual price | |
| PayPal Rewards card |
20.99% |
$0 |
| Common bank card |
16.58% |
$110 |
RateCity.com.au analysis director, Sally Tindall, stated: “PayPal has been a dominant participant in on-line transactions for years. Now it’s branching out into credit score by launching two new merchandise in a matter of weeks, ‘Pay in 4’ and a rewards bank card.”
“PayPal needs to be the whole lot to everybody. It could actually see the funds market is evolving but in addition fragmenting, and so it’s trying to cowl off as many bases as attainable,” she stated.
“Banks and fee suppliers are doing all they will to remain related in a quickly altering market. In the event that they keep on with their knitting they’re going to be left behind.
“That stated, bank cards is likely to be on the decline, however they aren’t lifeless and buried.
“There are nonetheless over 12.5 million private bank card accounts, making about $22 billion in transactions each month, with nearly $20 billion accruing curiosity.
PayPal tapping into Australians’ love of rewards bank cards
PayPal’s new bank card will supply clients rewards on each greenback they spend with no annual price.
“Australians love the thought of getting one thing for nothing but when there’s cash owing on the finish of the month, they’ll be hit with curiosity fees of 20.99 per cent,” Tindall stated.
“Incomes rewards factors with out having to pay an annual price might be a pretty proposition for diligent clients, but it surely’s not but clear what number of factors clients might want to redeem rewards, so the satan may nonetheless be within the element,” she stated.
PayPal’s bank card competitors: Rewards playing cards with no annual charges
| Lender | Card | Fee | Annual Charge |
| American Categorical | Important Credit score Card |
14.99% |
$0 |
| Coles | No Annual Charge Mastercard |
19.99% |
$0 |
| HSBC | Premier World Mastercard (Rewards Plus) |
19.99% |
$0 |
| BankVic | Qantas Visa Credit score Card |
16.95% |
$0 |
| Kogan Cash | Black Card |
20.99% |
$0 |
Supply: RateCity.com.au
