[eMarketer] PayPal’s new credit card could shore up merchant relationships

PayPal launched a new cash-back credit card for small businesses, per a press release. The PayPal Cash Back Mastercard is issued by WebBank.

The new card can help PayPal shore up its seller relationships and generate revenues.

Its first business card can help PayPal differentiate itself from competitors like Block and more effectively compete with larger banks that use credit to complement their small-business suites—especially as providers like Amex hone in on the space.

It can also limit attrition: Rather than cobbling together insights and services from various third parties, merchant clients can access more from PayPal, making it more useful. And it can generate a new stream of revenue for the provider.

According to eMarketer, PayPal has been doubling down on merchant services. It recently updated its fee structures, partnered with Aon to improve insurance access, and integrated return logistics firm Happy Returns directly into its offering.

Doing so can help PayPal more effectively serve its 35 million merchant accounts and further expand its base, which grew 12.9% annually in Q1 2022. That would underscore bigger picture long-term success—merchants are responsible for most of PayPal’s revenues.

Read the full eMarketer article here

www.emarketer.com

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