Everything you need to know about PayPal Pay with Rewards
Without a doubt, consumers are spending less on travel.
The ongoing pandemic has significantly impacted the industry as a whole, including decreased demand for flights and hotels. However, that has also opened the door for companies to engage with consumers for things that they are spending on now.
From buying more groceries to getting more food delivered, consumer behavior has shifted dramatically in 2020. And it's not only credit card companies that have responded with new ways for you to redeem your points.
Enter PayPal's Pay with Rewards*. PayPal has made it easier for eligible cardholders to use their points at millions of retailers online.
Today, let's dig into PayPal's Pay with Rewards* feature to see how you can use your eligible credit card rewards at millions of online businesses.
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What is PayPal's Pay with Rewards?
At TPG, we always welcome another opportunity to use flexible credit card points and balances – and appreciate when cardholders have more options at their disposal.
By enrolling and linking your eligible credit cards (more on that later) and tapping into your rewards as a budget extension, a way to support small businesses or even donate, PayPal's Pay with Rewards* feature allows customers to shop online using eligible credit card rewards at millions of businesses. Link rewards from credit card issuers such as American Express, Chase, Citi, Capital One and Discover to PayPal, and 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.
Related: Boost your rewards by using PayPal with your credit cards
Earn your rewards
Travel might be down this year, but this is also an ideal opportunity to build up your points balances and strategize for the future.
First, you can earn rewards with your given credit card program as you normally do when you check out with the cards in your PayPal wallet. For example, you can link your Amex to your PayPal wallet, and use that as your preferred funding method anywhere PayPal is accepted online – while still earning points like you normally would with your Amex card. Of course, you'd want to maximize your earnings by using the right rewards card for a respective bonus category.
Don't miss out on building up your rewards balances when you make everyday purchases by linking your card in your PayPal wallet. However, note that you can also redeem points with select PayPal partners:
- American Express Membership Rewards
- Chase Ultimate Rewards (currently live through Chase Pay)
- Citi ThankYou Rewards
- Discover Cashback Bonus
- Capital One Rewards
Related: A review of the PayPal Cashback Mastercard
It takes just a few seconds to add your card through PayPal. Here's what it looks like once an American Express Membership Rewards-earning card is linked:
Spend your rewards
Now, for the fun part. PayPal's Pay with Rewards* feature enables credit cardholders to use rewards points on millions of different items, including essential things that you need most, at millions of online businesses where PayPal is accepted.
Since PayPal is seamlessly integrated into checkout at millions of online merchants, it makes it incredibly easy to use your card points just about wherever and whenever you need it most.
The draw is flexibility and ease
In our evaluation of PayPal Pay with Rewards, we found that the redemption rates were on par with other retail redemptions, and we were able to find individual conversion rates with each credit card provider pretty easily on their respective websites. Although redemption rates aren't as high as you'd get using points for things such as travel directly through your Credit Card platform, the key here is flexibility and ease of use, as well as the ability to use your rewards at businesses you know and love, like small businesses in your community. PayPal's offering expands your choice to the millions of merchants who accept PayPal and don't just limit it to one platform. There are some merchant exclusions, but on the whole we found that paying with Pay with Rewards at checkout was commonly available when checking out with PayPal.
Related: How to use shopping portals to maximize your purchase
Peace of mind with purchases
There's another added benefit to checking out with PayPal. PayPal users also get the secure transactions when using the platform and spending your rewards on eligible purchases. That includes benefits like "Return Shipping on Us**," a refund of eligible return shipping costs, and Purchase Protection*** for eligible items that are not received or were not what was described.
Bottom line
While travel is down in the current environment, there are still plenty of opportunities to use your points elsewhere -- including for everyday purchases using PayPal's Pay with Rewards feature.
As the pandemic wears on, there is a demand for people to use their rewards balances, even for everyday spending. Evaluate your earning and burning strategy. And if you're sitting on a pile of unused points, ensure that you're somehow making use of them.
*Enrollment may be required. Available on eligible transactions. Terms apply.
**Return shipping on Us requires activation and is available for eligible purchases. Limitations apply.
*** PayPal Purchase Protection is available for eligible transactions. Terms and Limitations apply.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees