PayPal has recently launched its new credit card, the PayPal Cash Back MasterCard. It's considered to be one of the first cards that offer consumers direct cash back on a purchase rather than earning points. PayPal's card is in partnership with Synchrony Financial. At the moment, PayPal claims that the card has no expiration, no restrictions on how you can spend the cash rewards, no minimum on redemption amount, no annual fee, and offers 2% cashback on purchases.

PayPal recently launched a new cash-back credit card. Source: Fortune

It comes with the standard benefits of MasterCard including identity theft resolution assistance, purchase protection, and extended warranty coverage. On top of that, it will also include PayPal's own security protections at no extra cost.

The card is only accessible if you are a PayPal member. Once approved, it will be automatically added to the user's wallet. This basically means that the user can start using the card even before it physically arrives in the mail.

Keep in mind that this is not the only card offered by PayPal. However, it's the most compelling offer by it, especially considering that most consumers now prefer cash back cards.

The PayPal credit card is only accessible if you are a PayPal member. Source: My Broadband

The other popular card from PayPal is the PayPal Extras MasterCard, but it's more on a traditional "3-2-1" reward system. This means that a consumer can earn points for using the card for restaurant and gas station purchases, as well as money spent on eBay and PayPal.

eBay has its own similar card which is managed by PayPal. eBay card holders have access to most of the benefits offered to PayPal customers like PayPal Credit, a sort of credit line that can be used by consumers when purchasing at businesses that accept PayPal.

The introduction of PayPal's cash back card is part of the company's evolving strategy to increase traction in the area of point-of-sale. It's an area in which Samsung Pay, Android Pay, and Apple Pay are quickly gaining grounds.

To quickly gain dominance, PayPal is on a partnering spree. The company even partnered with Apple, Citibank, and Chase, which can be considered as rivals in this specific payment processing industry. PayPal is also partnering with tech company giants such as Samsung, Google, and Facebook, which also offer their own checkout and wallet systems that use Mastercard, Visa, and Baidu.

At the moment, PayPal is reported to have 201 million users. The company is hoping that the new cash back card can help them gain more usage in offline and online stores.

The new credit card comes with a lot of benefits for cardholders. Source: Money Saving Expert

According to PayPal's spokesman, "cardholders can freely manage their own accounts, redeem the cash rewards that they have earned, and make the necessary payments by simply logging to their PayPal account." This gives another reason for users to use and access their dormant PayPal accounts.

PayPal knows for a fact that their cardholders use their service more often compared to the members that don't have a card. On average, a PayPal member that uses a PayPal credit card spends 35% more using the card compared to the PayPal members without a card.