GE Consumer Finance Launches PayPal Plus Credit Card in Partnership with eBay and PayPal

Strategic Insights -

GE Consumer Finance, a unit of General Electric Company, has announced a relationship with eBay Inc. and PayPal Inc. to launch the new PayPal Plus Credit Card, a MasterCard credit card featuring an exclusive rewards program for PayPal users. This partnership expands on the relationship created in June 2004 for GE to offer PayPal Buyer Credit, a private label revolving credit line available to registered PayPal customers. The PayPal Plus Credit Card offers extended purchase protection, special financing offers, and integrated online account management and alerts to PayPal Plus customers.

Key Takeaways:

  • The new PayPal Plus Credit Card is a MasterCard credit card featuring an exclusive rewards program for PayPal users, offering one Reward Point for every $1 spent in purchases, with the option to redeem points for a $25 coupon towards eBay.com purchases.
  • PayPal Plus customers will benefit from extended purchase protection, special financing offers, and integrated online account management and alerts.
  • The PayPal Plus Credit Card is part of a new multi-year credit agreement between GE Consumer Finance, eBay, and PayPal, which also includes the launch of an eBay-branded credit card.
  • GE Consumer Finance will be responsible for issuing the PayPal Plus Credit Card and providing customer service, billing and credit management.
  • The partnership aims to provide rewards, security, and convenience to shoppers, allowing them to apply and buy with an instant online credit process and earn rewards by using their PayPal Plus Credit Cards anywhere MasterCard is accepted.
  • Margaret Keane, president and CEO of GE Consumer Finance's Retail Consumer Finance unit, stated that the new PayPal Plus Credit Card is a natural extension of the partnership between three great worldwide companies offering rewards, security, and convenience.
  • Chris George, senior director of financial products for PayPal, expressed excitement about the partnership, stating that PayPal users will enjoy the benefits of the PayPal Plus Card, including the extensive rewards program, special financing, and safety and security.

Statistics:

  • $163 billion in assets for GE Consumer Finance, a leading provider of credit services to consumers, retailers, and auto dealers in 50 countries around the world.
  • 300,000 people employed by GE worldwide, serving customers in more than 100 countries.
  • 2,500 points required to redeem a $25 coupon towards eBay.com purchases made with PayPal.
  • 0% interest on purchases and balance transfers until January 2007 for successful applicants to the PayPal Plus Credit Card.
  • Six programs offered by GE Consumer Finance, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, and corporate travel and purchasing cards.

Sources:

  • GE Consumer Finance Press Release, "GE Consumer Finance, eBay, and PayPal Launch PayPal Plus Credit Card," Stamford, Conn., 2005.
  • General Electric Company, "GE Consumer Finance, eBay, and PayPal Launch PayPal Plus Credit Card," Stamford, Conn., 2005.
  • eBay Inc., "eBay and GE Consumer Finance Launch PayPal Plus Credit Card," San Jose, Calif., 2005.
  • PayPal Inc., "PayPal and GE Consumer Finance Launch PayPal Plus Credit Card," San Jose, Calif., 2005.
  • GE Consumer Finance, "GE Consumer Finance Overview," Stamford, Conn., 2005.
  • General Electric Company, "GE Overview," Stamford, Conn., 2005.