Personal Finance News
PayPal Adds Limited-Time Cashback Offer to BNPL Service
With the holiday shopping season quickly approaching, PayPal is looking to boost its “buy now, pay later” (BNPL) option with a special offer.
About the PayPal But Now Pay Later Offer:
From now through the end of the year, PayPal BNPL customers can earn 5% cashback on their purchases. This includes both online and in-store transactions made with the service.
To get started, users will need to save the cashback offer from the PayPal offer. From there, you’ll automatically earn the 5% cashback on eligible transactions. However, this 5% back rate is capped at a total of $5,000 in purchases. This means that, at most, customers will earn a maximum of 25,000 PayPal Points with this deal, with these points then redeemable for $250. Moreover, PayPal notes that a maximum total of 1.5 billion points has been allotted for this offer.
With PayPal BNPL, customers can finance purchases between $30 to $1,500 over the course of four payments. The first of these payments is due at the time of the transaction, with the additional three coming two weeks apart (for a total of six weeks). This “Pay in 4” option has no interest or late fees.
Meanwhile, PayPal also now offers a Pay Monthly BNPL service. Valid for purchases between $49 and $10,000, this option allows customers to get approved for their requested loan amount and utilize a single-use virtual card (which also supports digital wallets) for their purchase. Users can select between terms of 3, 6, 12, or 24 months with APRs ranging from 9.99% to 35.99%. Note that Pay Monthly purchases also qualify for the current 5% back offer.
For those who want to avoid BNPL but still want to earn 5% cashback, PayPal does have another option. With the PayPal Debit Card, customers can earn 5% back in one selected category each month (up to $1,000 in category spending per month). This cashback can also stack with other available offers in the PayPal app.
What They’re Saying:
Discussing this BNPL offer, PayPal’s GM of Small Business and Financial Services Michelle Gill stated, “Our customers seek payment options that make holiday shopping easier and more rewarding. With cash back on Buy Now Pay Later products, we’re giving them a smarter way to pay and more flexibility to shop the way they want.”
Gill went on to note, “And for merchants, PayPal BNPL is a proven way to attract more shoppers and increase conversion during the busiest season of the year.”
My Thoughts:
Maybe I’m an old fuddy-duddy (a phrase that only an old fuddy-duddy would say, by the way), but I’m still quite skeptical of “buy now, pay later” overall. That said, as someone who appreciates credit card rewards and cashback, earning 5% back on a purchase while avoiding any interest does sound like a good deal. Of course, to pull off this deal, you will need to show restraint and ensure you make on-time payments. Otherwise, the benefit of the 5% back will be erased and then some.
Honestly, seeing as I’ve never tried BNPL before, perhaps this offer will give me a chance to give it a shot in a bid to write about it more authoritatively in the future. So stay tuned, I guess? UPDATE: Actually, Missouri is the only state whose residents are unable to participate in the Pay in 4 option, so nevermind!
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