PayPal Enhances Popular Online Credit Offering with New Physical Card for In-Store Use

Rhea-AI Summary

PayPal (PYPL) has announced a significant expansion of its PayPal Credit service by introducing a new physical Mastercard, issued by Synchrony. The card enables customers to use PayPal Credit both online and in-store wherever Mastercard is accepted. A notable feature includes a limited-time promotional offer for travel purchases, allowing customers to spread payments over six months with no minimum spend requirement. The card maintains the existing benefit of six-month promotional financing on PayPal purchases over $149. This expansion addresses customer demand for flexible payment options in physical retail locations and complements PayPal's existing financial products, including the PayPal Cashback Mastercard and Buy Now Pay Later services. The physical card will be rolled out to US customers in the coming weeks, with eligible existing PayPal Credit customers receiving upgrade notifications.

Positive

• Expansion of PayPal Credit to physical retail locations through Mastercard network increases potential transaction volume
• Partnership with established financial players Synchrony and Mastercard strengthens market position
• New travel-focused promotional financing could drive higher-value transactions
• Integration with mobile wallets provides modern payment convenience
• Builds on existing successful PayPal Credit product with proven customer demand

Negative

• Potential increase in credit risk exposure through expanded credit offering
• Promotional financing periods could impact short-term revenue
• Increased competition in the crowded credit card market

Insights

Financial Services Product Analyst

PayPal expands revenue potential by extending PayPal Credit to physical retail through new Mastercard, strengthening its omnichannel payment ecosystem.

This strategic product expansion represents a significant growth opportunity for PayPal by addressing a key limitation in its credit offering. Until now, PayPal Credit was restricted to online transactions, but the new physical Mastercard dramatically extends its utility to in-store retail environments and everywhere Mastercard is accepted—essentially unlocking an entirely new revenue stream from the same product.

The move intelligently leverages PayPal's existing customer base by targeting current PayPal Credit users who have "long been requesting" this capability. This suggests pent-up demand that could drive rapid adoption with minimal customer acquisition costs. The promotional travel financing offer (six months with no minimum spend) is particularly well-timed as it taps into post-pandemic travel recovery trends while incentivizing high-value transactions.

From a competitive standpoint, this strengthens PayPal's position against both traditional credit card issuers and buy-now-pay-later specialists like Affirm and Klarna by creating a more comprehensive omnichannel payment ecosystem. The partnership with Synchrony (handling the underwriting) and Mastercard (providing the acceptance network) allows PayPal to expand its credit offerings without assuming direct lending risk or building acceptance infrastructure.

This launch complements PayPal's broader strategy of diversifying payment options beyond its core wallet, creating multiple monetization touchpoints with consumers across various shopping contexts and financing needs. The mobile wallet compatibility further enhances the value proposition by addressing the growing contactless payment preference among consumers.

Includes a limited-time offer for customers to pay for travel purchases over six months with promotional financing and no minimum spend¹

SAN JOSE, Calif., June 3, 2025 /PRNewswire/ -- Today, PayPal announced that PayPal Credit can now be used everywhere with the introduction of a new physical card, issued by Synchrony (NYSE: SYF). This expands its popular digital PayPal Credit offering to use both online when checking out with PayPal and in-store and everywhere Mastercard^® is accepted.

When using the new physical card, customers will also have access to a limited-time offer to pay for travel purchases over six months with promotional financing and no minimum spend¹. This gives account holders a more manageable way to pay for qualifying travel purchases like flights, hotels, cruises, and ride shares, which can be spread over time to best suit their budget and needs.

PayPal Credit is a customer-favorite way to pay online, and the new physical card meets growing demand to extend this unique, flexible financing option for in-store use. This is PayPal's next flexible payment innovation that caters to customers looking to take PayPal Credit everywhere. In addition to the limited-time travel offer, customers can continue to enjoy six-month promotional financing on PayPal purchases over $149.¹

"PayPal Credit is one of our most popular products and customers have long been requesting the ability to use it on-the-go as they look for more choice and flexibility wherever they shop," said Scott Young, SVP, Global Head of Consumer Financial Services at PayPal. "From our buy now pay later options to our credit cards, we continue to bring customers a range of solutions to help them manage cash flow and pay in the ways that suits their budgets for the things they love and need."

"As a long-time partner for PayPal's credit products, we are committed to continually innovating our offerings and enhancing the customer experience," said Bart Schaller, EVP & CEO, Digital at Synchrony. "Bringing customers another physical card option to use for everyday purchases gives them greater purchasing power both on and offline."

"We're proud to expand our longstanding partnership with PayPal to bring even more value and flexibility to consumers," said Adam Granoff, EVP, Global Partnerships at Mastercard. "Bringing together Mastercard's global acceptance network with PayPal's trusted digital platform, this new offering extends PayPal Credit with a physical card that empowers cardholders to shop seamlessly and confidently everywhere—whether they're booking summer travel or making everyday purchases."

This new offering joins the PayPal Cashback Mastercard® as another physical option to use both online and in stores and can be added to mobile wallets for fast and easy tap-to-pay. Plus, customers looking for flexibility at checkout can also apply for a PayPal Buy Now Pay Later loan which lets them break purchases into smaller payments over weeks or months.

The physical card will be rolling out in the coming weeks to US customers. Eligible existing PayPal Credit customers will be notified about their card upgrade over the coming weeks.  Learn more about PayPal Credit and the new physical card here.

About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.

About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company at the heart of American commerce and opportunity. From health to home, auto to retail, Synchrony products have been serving the needs of people and businesses for nearly 100 years. Synchrony provides responsible access to credit and banking products to support healthier financial lives for tens of millions of people, enabling them to access the things that matter to them. Additionally, through our innovative products and experiences, we support the growth and operations of some of the country's most respected brands, as well as more than 400,000 small and midsize businesses and health and wellness providers that Americans rely on. Synchrony is proud to be ranked as the country's #2 Best Company to Work For® by Fortune magazine and Great Place to Work®. For more information, visit www.synchrony.com.

1. See terms.

Media Contact
Mediarelations@paypal.com

 

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SOURCE PayPal Holdings, Inc.

FAQ

What is PayPal's new physical credit card offering?

PayPal is introducing a physical Mastercard for PayPal Credit that can be used both online and in-store wherever Mastercard is accepted, featuring promotional financing options including six months financing for travel purchases with no minimum spend.

When will PayPal's new physical credit card be available?

The physical PayPal Credit card will be rolling out to US customers in the coming weeks from the announcement date of June 3, 2025.

What are the promotional financing terms for PayPal's new credit card?

The card offers six-month promotional financing on travel purchases with no minimum spend (limited time offer) and six-month financing on PayPal purchases over $149.

Who is issuing PayPal's new physical credit card?

The new PayPal Credit physical card is issued by Synchrony (SYF) and runs on the Mastercard network.

Can the new PayPal Credit card be used with mobile wallets?

Yes, the new PayPal Credit physical card can be added to mobile wallets for tap-to-pay functionality.