SAN JOSE, Calif., June 25, 2020 /PRNewswire/ -- PayPal today
released new research looking at purchasing behaviors of
credit card rewards holders during the COVID-19 pandemic, revealing
people around the country are turning to rewards balances to help
them stretch their budgets (29%) and purchase the things they need
most, such as groceries. However, with 39% of credit card rewards
holders unaware of their rewards balances, there's an
opportunity for more people to uncover funds which could extend
their budgets and help them buy the things they need most.
"More and more people across the country are turning to their
credit card rewards as a helpful and easy way to make their dollars
go further, and in the current environment, two thirds of Americans
(66%) now view these rewards balances as a way to buy the things
they need such as groceries and other essentials," said
Jill Cress, vice president of
consumer marketing at PayPal. "With travel and luxury items still
less of a priority for many right now, our research shows that
people are instead tapping into their rewards balances to support
small businesses in their community and to give back to
causes."
To easily, and securely use rewards balances as a budget
extension, PayPal's Pay with Rewards feature allows people to
seamlessly shop online using eligible credit card rewards at
millions of businesses. By linking rewards from credit card issuers
such as American Express, Chase, Citi and Discover to PayPal, Pay
with Rewards can convert your rewards balance to a dollar figure to
put towards online purchases, including for groceries, clothing
stores, food delivery services, and more. Plus, purchases
made using PayPal and Pay with Rewards can
benefit from PayPal's Purchase Protection and Return Shipping
On Us (on eligible purchases), helping to provide peace of mind and
secure shopping.
Using Rewards Balances to Shop for Everyday
Essentials
The research shows nearly a third (30%) of credit
card holders say rewards balances are useful to fund everyday
spending, such as groceries (40%), gift cards (37%) and clothing
(34%). Additionally, two thirds (64%) of respondents think rewards
balances are as valuable as spendable cash.
At the end of April, the items Americans claim they were most
likely to purchase using rewards include:
- Toilet paper (25%)
- Cleaning products (25%)
- Drinking Water (22%)
- Hygiene products (20%)
Supporting Small Businesses and Causes with
Rewards
The research also showed that since the COVID-19
outbreak began, nearly three quarters (74%) of credit card holders
have made a conscious effort to shop more at locally owned, small
businesses. Nearly a quarter (24%) would choose to spend rewards
with a small business if their points were about to expire.
In addition, with nearly half of Americans enrolled in a credit
card rewards program (49%) saying they are now likely to donate to
a charitable cause, PayPal has expanded its Pay with Rewards
feature, enabling customers to donate their credit card rewards to
support charitable causes through the PayPal Giving Fund (terms
apply), including COVID-19 relief efforts.
Use Rewards in More Ways at More Places
With 27% of
credit card holders actively trying to collect as many rewards as
possible, PayPal's Pay with Rewards offering provides an easy way
for shoppers to use their rewards at millions of online stores.
Customers with eligible credit cards from American
Express, Chase, Citi and Discover can simply add credit cards
to PayPal, link their rewards, then redeem eligible
points using PayPal at checkout.
From groceries to clothing, home improvement to hobbies,
PayPal's Pay with Rewards feature gives
customers more places to spend their rewards points,
including many small businesses around the country. More
information on Pay with Rewards can be found here.
About the research:
PayPal commissioned Atomik
Research to conduct an online survey of 1,543 American credit card
users who are enrolled in at least one credit card rewards program.
The margin of error for the overall sample is +/- 3 percent with a
confidence interval of 95%. Fieldwork took place between
Wednesday, April 29, 2020 and
Thursday, April 30, 2020.
About PayPal:
PayPal has remained at the forefront of
the digital payment revolution for more than 20 years. By
leveraging technology to make financial services and commerce more
convenient, affordable, and secure, the PayPal platform is
empowering more than 300 million consumers and merchants in more
than 200 markets to join and thrive in the global economy. For more
information, visit paypal.com.
Contacts
Media Relations Contact
Tom Hunter
thhunter@paypal.com
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SOURCE PayPal Holdings, Inc.