PayPal to offer holiday rebates and free shipping

PayPal, EBay Inc.’s online payment services division, said it would offer as much as $100 million in holiday rebates and free shipping to fend off competition from Google Inc.

Consumers will receive as much as $20 in cash-back rebates from PayPal when they make online purchases on EBay and certain merchant websites in North America, San Jose-based PayPal said in announcing the biggest promotion in its eight-year history. The rebates are to run from Nov. 23 to May 15.