Earn up to 3% on purchases: PayPal launches improved cash-back card

Apr 5, 2022

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There’s a new and improved cash-back card on the block.

PayPal will soon relaunch the no-annual-fee PayPal Cashback Mastercard to offer one of the most impressive earning rates we’ve seen.

Issued by Synchrony Bank, cardholders will earn a generous 3% cash back on all purchases made through this popular electronic payment service, whether that’s online, through the mobile app or to pay in-store with a PayPal QR code.

This is a gamechanger for online shoppers, as thousands of stores accept PayPal at checkout — and 3% cash back is a considerable rewards rate. For all other purchases not made through PayPal, you’ll still earn 2% cash back, no matter the purchase.

Overall, this is an exciting new cash-back card that rivals some of what the bigger banks already offer. Here are more of the details.

The information for the PayPal Cashback Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer

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Who should apply?

You’ll want to make sure you’re maximizing your groceries with the right credit card. (Photo via Shutterstock)

Traditional cash-back cards often take one of two approaches.

The first is to offer elevated rewards on select purchases such as 3% on restaurants and grocery stores or the rotating 5% cash-back categories on the Chase Freedom Flex. Alternatively, some cards will offer a fixed-rate on all purchases for simplicity — and the best we’ve typically seen is a 2% rate on all eligible purchases.

The PayPal Cashback Mastercard will now be a blend of both, offering a preferred 3% earning rate on any purchase made with PayPal.

But given how many merchants now accept the payment service, the PayPal Cashback Mastercard will easily be prolific for a wide variety of purchases.

As such, the PayPal Cashback Mastercard is an ideal fit for those who want to earn cash-back rewards without an annual fee and don’t like keeping up with various category restrictions.

Many stores have started to accept PayPal QR codes as a payment method. (Photo by Alexi Rosenfeld/Getty Images)

“Our customers shopped across 34 different categories last year showcasing the diversity of their needs and interests, and we wanted to build a credit product that was flexible and better-matched rewards with their spending behaviors,” said Susan Schmidt, VP Consumer Credit, PayPal.

With this new card, PayPal has redesigned its user interface on its app and website so that cardholders can easily manage rewards, make credit card payments and more.

Your cash-back rewards will be readily available to you online, unlike other cards that make you wait until the end of your monthly billing cycle. You can then cash out your rewards to lower your statement bill, make new purchases from millions of participating stores or transfer your rewards to a bank account or debit card on file.

Finally, PayPal Cashback Mastercard will launch with a splash, offering new applicants a $100 welcome bonus after the first $500 spent.

Related: The pros and cons of cash-back credit cards

What if I already have the PayPal Cashback Mastercard?

A customer accesses her PayPal Mastercard on her phone
Photo courtesy of PayPal

This new PayPal Cashback Mastercard is an improved iteration of the existing PayPal Cashback Mastercard.

If you happen to already carry this particular card, you will be automatically upgraded into this new, up-to-3% earning scheme.

Related: How to choose a cash-back card

Bottom line

The PayPal Cashback Mastercard offers simplicity and value — two key factors that may be important to consumers who don’t want to overcomplicate the principle of earning rewards.

If you’ve been a long-time fan of this payment service for its ease of use and security features, you may want to consider applying for this new cash-back card that will help you maximize your everyday purchases. The new card will “will soon be available to select customers who can apply through the PayPal app and paypal.com and will continue to roll out in the coming weeks,” but we’ll keep you posted on when applications are officially live for this product.

Featured photo by Rafael Henrique/SOPA Images/LightRocket for Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
17.24%-26.24% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

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