PayPal 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.
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“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.”
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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.
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