[Update 4/17/19: Today Citi sent some people an email on their AT&T card indicating that this option will be default-enabled beginning May 30. Apparently, this option is already live when you actively link your Citi and Paypal accounts, and beginning soon, some (?) Citi cards will have it enabled by default unless you specifically opt out.]
Today, Citi and PayPal announced an expansion of their agreement that will allow the use of ThankYou points to be used within Paypal checkout to pay for all or part of their purchases when shopping online at millions of merchants that accept PayPal in the United States. This functionality is slated to launch in 2018.
Now for the unexciting part: Citi has clarified with Doctorofcredit that the redemption rate with Paypal redemptions will be “the rate will be akin to that for other partners such as Amazon.” In other words, .8 cents per point.
If it would be one penny per point, it would be a useful option for those who don’t want to redeem for travel. Anything less than a penny probably isn’t worth it since you can get mortgage checks and gift cards at a 1 cent-per-point valuation. Also, Citi Prestige cardholders will be able to redeem at 1 cent-per-point directly as cash, beginning on July 23, 2017.
Hopefully, Citi and Paypal will run promotions to encourage people to use their ThankYou points on purchases, similar to the Amazon deals we see. Also, a reader pointed out that the Paypal and Amazon redemption options can be useful for someone who has small, orphaned point balances. Using Paypal or Amazon redemption, you should be able to redeem any amount.
Chase also just announced a partnership with Paypal to enable redeeming Ultimate Rewards points at Paypal checkout, among other things.
