min read
· Posted on
July 1, 2021

Paypal goes back to the future by launching a new credit card

Paypal's launch of credit card seems strange - here's why it makes sense

What's the key learning?

  • Paypal's strategy to become your one-stop payment shop - wherever and whenver that may be.
  • Despite credit cards being on the decline, Paypal would prefer to have a small piece of this pie than leave it to competitors.


Paypal has decided to go 'vintage' by moving from online to offline with a new credit card.

We all know Paypal as the massive digital payments platform. They have around 392 million users globally, with around 9.1 million Aussie users.

Last year, Paypal copied Afterpay with its pay-in-4 option. But strangely, they've now decided to enter the declining credit card space.

This means you’ll be able to use Paypal to shop in-store, which you can already do with buy now pay later platforms like Afterpay and Zip.

So, what's the key learning?

When it comes to the payments space, there are many ways for consumers to move money around.

  • There’s cash (what’s that again?)
  • There’s money transfers
  • There’s online purchases
  • There’s store purchases

Despite this move not making much 'logical' sense, it's all part of Paypal's strategy to become your one-stop payment shop.

Paypal would prefer to have a small slice of a declining credit card industry than no slice at all. Plus, this enables Paypal to get into physical stores, where many of its competitors are.

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