Payment Methods

Discover Cardholders Can Now Redeem Rewards Via PayPal

Discover card sign

PayPal and Discover have joined forces to allow customers to use the credit card’s Cashback Bonus or Miles to buy things through PayPal, according to a Monday (Nov. 25) press release. 

Once the accounts are linked, Discover customers can pay for purchases at millions of online stores using PayPal, and instantly redeem any amount of accumulated rewards. 

“We want to make it as easy as possible for our cardmembers to redeem their rewards, especially by partnering with merchants where our Discover cardmembers love to shop,” said Shannon Kors, vice president of card rewards and benefits at Discover. “Our customers loved seeing PayPal added to this year’s categories in the 5% Cashback program. Now they can spend the rewards they earned with PayPal and have more choices when they pay.”

The feature, the release said, will allow for Discover cardmembers to “enjoy the convenience and security of checking out with PayPal while shopping at millions of merchants online.”

In July of 2020, the partnership will expand to allow for Discover card owners to get 5 percent cash back on up to $1,500 purchases if they use PayPal.

Customers, in addition to linking the accounts, can also sign up for PayPal through a Discover account. 

Discover also recently tied up with the Zelle network for person-to-person (P2P) money transfers.

Discover customers can enroll in Zelle using the Discover mobile app or the online account center.

“Giving Discover Bank customers the ability to send and receive money between friends and family is a natural extension of our commitment to offer a seamless, full-service digital banking experience,” said Ram Subramanian, vice president of deposits at Discover. “We are continually listening to what our customers say and are excited to offer Zelle to improve their banking experience.”

The benefits of using Zelle include fast money transfer and payments between almost anyone with a U.S. bank account without the need to share sensitive data.

In addition to offering money transfers with Zelle, the Discover mobile app also lets customers temporarily freeze their debit card in case it is misplaced, deposit checks by phone and pay bills. Discover also has a no-fee nationwide network of 60,000 ATMs.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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