Paypal will be launching an old-school credit card with a modern twist

Paypal’s new credit card will offer both short-term interest-free repayment plans and longer-term, interest-bearing credit products.

Retail payments data released by the Reserve Bank on Monday showed a 29 per cent annual fall in the value of goods being bought on credit cards.

The company says many of their users still want a physical credit card, especially if it has no annual fee and accumulates reward points.

John Winters, the co-founder of Superhero told tickerNEWS that PayPal out of touch with the millennial customers.

“There is no silver bullet when it comes to payments,” said Andrew Toon, general manager of payments for PayPal Australia.

“We are focused on delivering a one-stop payments shop.”

He says the PayPal card will hold redeemable discount points in a digital wallet.

Citi will issue the new Paypal credit card. Citi is Australia’s firth-largest credit card provider to the country’s four major banks.

Baking innovation

PayPal is not the only innovator in the credit card market. At a technology briefing last month, Commonwealth Bank chief executive Matt Comyn said its no-interest credit card ‘Neo’.

Commonwealth say Neo has been a big hit with millennials.

This comes amid a growing interest in the ‘buy now, pay later’ sector driven majorly by millennials.