In a bold move to expand its reach beyond online and peer-to-peer payments, PayPal is making a significant push into the point-of-sale (POS) market. The company is integrating its debit card with Apple Pay and offering a range of cashback rewards, aiming to attract customers for in-person purchases at stores, cafes, and restaurants.
This strategic shift, led by new CEO Alex Chriss, marks a departure from PayPal’s previous focus on online and mobile transactions. The company, known for its Venmo app, is now actively promoting its products for in-person use. The venture into POS payments includes a compelling offer: 5% cash back on a category of a user’s choice, up to $1,000 per month, when using their PayPal Debit MasterCard. Customers can also earn additional rewards from popular brands like DoorDash, Domino’s, and Sephora.
Furthermore, PayPal is enabling its customers to use debit cards with Apple Pay, capitalizing on the rising popularity of mobile wallets and contactless “tap to pay” options. This move comes at a time when Apple and Mastercard are increasingly competing with PayPal in the payments space. Earlier in June, Apple opened its NFC gates, potentially benefiting both PayPal and Block Inc. The recent developments follow PayPal’s expansion of its strategic partnership with Fiserv, aimed at enhancing checkout conversions.
The company is reportedly making its largest-ever marketing investment to promote using PayPal in person, although the exact amount remains undisclosed. This aggressive marketing push underscores PayPal’s determination to establish a strong presence in the highly competitive in-person payments market. With its competitive cashback rewards and integration with Apple Pay, PayPal is positioning itself to attract a significant share of in-person transactions.
