MasterCard (NYSE:MA) and PayPal Inc. (NASDAQ:PYPL) have expanded the popular PayPal Business MasterCard® Debit Card offering to more businesses in Europe. The debit card offers small businesses cash rebates on spending and quick access to PayPal funds.
Businesses to receive 0.5% for spending
The card makes it easier for businesses to spend their PayPal funds, and they receive an unlimited cashback of 0.5%. Small businesses can access their PayPal funds and spend in the over 52 million merchant locations across the globe that accepts MasterCard. PayPal is making the debit card available in five more European countries: Ireland, Italy, France, Austria, and Spain. Currently, the PayPal Business Debit MasterCard is available in the UK and Germany in Europe plus the US.
Most importantly, there is no monthly charge or foreign exchange charges in the debit card, but there is a flat ATM fee of €2 globally. The COVID-19 pandemic caused some problems even for financially strong companies. Considering MasterCard’s popularity, the expansion of the debit card availability to more business owners in Europe will help in access to funds than before. According to the companies’ announcement, the ability to access funds easily to pay for products and services and receive rebates as businesses begin to reopen will be important in the survival of small businesses. PayPal pays business owners around $45 million annually through the cashback program.
Making it easier for small business to access funds
In Germany and the UK, the debit card is mostly used when buying digital marketing services and retail items for supplies and inventory. On the other hand, it is used in purchasing everyday essentials like cellular phone bills, petroleum, and purchasing business services in the US.
Jacob de Geer, PayPal’s VP Small Business Products, and iZettle said that every day without small businesses getting the funds and support they require, they risk bankruptcy. As a result, the industry needs to make it easy for small businesses to easily access their funds and expand the PayPal Business Debit MasterCard.