Small Business News
PayPal Launches Small Business Credit Card with Flat 2% Cashback
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The popular platform PayPal is rolling out a new product built specifically for small businesses. Today, the FinTech announced the launch of The PayPal Business Cashback Mastercard. The new card will be issued by WebBank and marks the first time PayPal has offered a business credit card.
With the PayPal Business Cashback card, business owners will be able to earn 2% cashback on all purchases. This earning rate is not capped nor is it category-specific. As for other benefits, employee cards will be made available with separate account numbers but with consolidated billing, thus reducing expense reports and reimbursements. Also notable is that the PayPal Business Cashback card carries no annual fee.
As mentioned this is the first business credit card from PayPal. Nevertheless, the product is quite similar to the personal PayPal Cashback Mastercard, which also earns 2% cashback on all purchases and has a $0 annual fee. However, the company recently added a new feature to the card, earning customers 3% back when they checkout using PayPal.
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In a statement about the new product and the timing of its launch, PayPal’s VP of Global Merchant Lending Bernardo Martinez said, “As small business owners continue to recover from the challenges of the past two years, having multiple financing options to address their capital needs is more important than ever. The PayPal Business Cashback Mastercard provides merchants greater value, more choice and the increased flexibility they need to manage their business finances, offering among the best value available on no annual fee business credit cards today.” Martinez continued, “This new solution continues PayPal’s commitment to supporting small businesses and offering options to help manage the day-to-day costs of operating their business.”
Interestingly, in addition to partnering with WebBank and Mastercard for the new offering, PayPal also worked with Concerto — a FinTech that recently closed a $21 million early-stage funding round. Commenting on the partnership, Concerto’s co-founder and CEO Dan Duncan stated, “PayPal’s mission to democratize financial services for all – businesses and consumers – closely aligns to Concerto’s corporate strategy. Our goal is to provide the tools necessary for businesses to be successful – and the PayPal Business Cashback Mastercard helps both companies advance their respective missions.”
For small business owners, the new PayPal Business Cashback Mastercard could be a solid option as its flat 2% cashback rate makes it easy to earn rewards without worrying about maximization. At the same time, it is perhaps a bit surprising (and disappointing) that the company didn’t add on the same 3% cashback perk it recently brought to its personal cards. Nevertheless, the card could certainly be a winner for the right entrepreneur.
