PayPal Holdings on Thursday upgraded its rewards program for debit card users with a 5% cash back offer. PayPal stock has gained 17% in 2024 as new Chief Executive Alex Chriss ramps up new products and services.
Users of the PayPal debit card, offered through MasterCard, will receive 5% cash back on up to $1,000 in selected category spending per month. Previously, PayPal had in-app cash back offers at select merchants, such as Sephora. The new category rewards program applies to broader areas such as restaurants, groceries or clothing.
PayPal Stock: Push Into Retail Stores
Competition in the debit card market has been heating up with new entrants such as Affirm Holding.
In addition, PayPal customers will be able to add their debit card to Apple's digital wallet, Apple Pay.
While PayPal's core market has been online purchases, it has been pushing into in-store purchases.
Under Chriss, PayPal has been overhauling its consumer strategy. Another initiative is "Fastlane," a guest checkout service that doesn't require users to create PayPal accounts.
PayPal Stock: Adyen, Fiserv Fastlane Deals
In August, PayPal expanded partnerships with Adyen and Fiserv. Adyen will offer PayPal's Fastlane to its enterprise and platform customers in the U.S. Meanwhile, merchant clients of Fiserv will offer Fastlane checkout.
PayPal plans to set up an ad network that uses their customer data to serve targeted ads for outside marketers. The company brought in Mark Grether as senior vice president and general manager of a new advertising business. Grether had been at Uber Technologies.
San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. PayPal stock holds a Relative Strength rating of 84 out of a best possible 99
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