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Everything you need to know about the new PayPal Rewards program

Oct. 20, 2022
5 min read
an unseen person holds a credit card while shopping online
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At TPG, we are big fans of stacking rewards when shopping online. You should never earn just 1 point per dollar on online purchases, given the abundance of shopping portals and using the right credit card for your purchase.

There's now another option for earning and redeeming points when shopping online. The new PayPal Rewards program, by the payment platform PayPal, functions partly like a shopping portal and partly like a "pay with points" platform.

Let's take a look at this new rewards program to see what it offers for customers when shopping online.

Use the right card and maximize your rewards on everyday purchases. Try it today with the free TPG App.

What is PayPal?

Before we get into the rewards program, let's make sure we all know what PayPal is.

PayPal is an online payment system with a website and an app that you can use to pay participating merchants or to send and receive money — even internationally and across different currencies. When using PayPal, you can add bank accounts, debit cards and credit cards as payment methods and choose which you want to use for each transaction.

Choosing which payment method to use is great when things like quarterly spending bonuses on PayPal purchases roll around, helping you earn the most points possible during your purchase. When paying with PayPal, you can still use shopping portals like Rakuten to add extra points or cash back to your transaction.

The PayPal Rewards program

Until now, PayPal has just been a way to pay when shopping online. As of Oct. 17, however, PayPal Rewards means you can earn and redeem points through PayPal when checking out online. You can now earn rewards with a Safari extension or in the mobile app. The Safari extension is an update to the PayPal Honey browser extension.

PAYPAL

When using the PayPal app, you won't be able to click through other shopping portals before making a purchase. Since PayPal's Honey browser extension functions like its own shopping portal, it's unlikely that you will be able to combine PayPal Rewards with other portals like Cashback Monitor, Rakuten or an airline shopping portal. So, make sure to check which program is offering the best return on your purchase.

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Depending on the merchant, earning rates can vary from 1% back to 4%, 5% or up to 10% back. This will vary by merchant and promotional offerings which can even change by the day. That means it's worth checking regularly to see if your favorite store has elevated earning rates.

Related: Your guide to maximizing shopping portals for your online purchases

Within the mobile app, you'll see the number of rewards you've earned and can find merchants by category. Or, you can click on the magnifying glass at the top to search for a merchant by name.

PAYPAL

At the time of writing, Sephora offers 10% back on purchases through PayPal Rewards. Bloomingdale's has an elevated rate of 8% back, but Walmart offers just 1% back on purchases. From this example, we see that it's worth checking merchants often, and we see that bonus-earning rates can vary widely from one store to another.

PAYPAL

You can find these deals by clicking the third icon on the bottom, which looks like price tags. There are no earning limits, so you can earn on every purchase throughout the year.

Redeeming your earnings

There are no airline transfer partners or sweet spots for redemptions with PayPal Rewards. Instead, the aim is flexibility and saving money.

Once you've earned rewards, you can use them toward your next purchase to offset the price. Additionally, you can redeem your rewards as cash back toward your PayPal balance. After the funds move into your PayPal balance, you can transfer them to your connected bank account or send money to someone else through a funds transfer.

Thus, you can use your rewards at PayPal checkout when shopping online or redeem your earnings for cash.

Bottom line

More ways to earn and redeem points when shopping online are always welcome. By stacking shopping portals, the right credit card and now PayPal Rewards, there are multiple ways to double dip or triple dip when shopping online. How much you'll earn with PayPal's new loyalty program depends on what a particular merchant offers that day, so your earning potential will vary.

Once you earn cash back, you can leave it in your Rewards profile to use on future purchases or redeem it into your PayPal balance. From there, you can transfer it to someone else if you owe them money or transfer it to your bank account to use as you please.

Featured image by YULIA GRIGORYEVA/SHUTTERSTOCK
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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TPG featured card

Best for earning alternative rewards for travel purchases
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review
Apply for Credit One Bank Wander® Card
at Credit One Bank's secure site

Rewards

1 - 10X points
10XEarn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel partner site
5XEarn 5x points on eligible travel, dining, and gas
1XEarn 1x points on all other purchases

Intro offer

Earn 10,000 Bonus Points
Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel

Annual Fee

$95

Recommended Credit

Fair/Good
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The revamped Wander Card from Credit One Bank earns cardmembers up to 10 points per dollar spent on eligible travel purchases. With no foreign transaction fees, the card is also great for international travel. However, points earned from this card can only be used at a fixed value, so it may not be the best option for those striving to get maximum value from their rewards.

Pros

  • This card has no foreign transaction fees and earns up to 10 points per dollar on travel purchases through the Credit One Bank travel partner site.

Cons

  • While cardholders can earn a significant amount of points on travel purchases, there isn't any way to redeem points from the Wander Card for maximum value (beyond 1 cent per point).
  • Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel
  • Earn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel site
  • Earn 5x points on eligible travel, dining, and gas
  • Earn 1x points on all other purchases
  • Redeem your reward points for statement credits, gift cards, merchandise, flights, hotels, and more
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Free Online Credit Score and Credit Report summary, terms apply
  • If you are a Covered Borrower under the Military Lending Act, you may get a different offer
  • See Rates & Fees
Apply for Credit One Bank Wander® Card
at Credit One Bank's secure site
Terms & restrictions apply. See rates & fees
Best for earning alternative rewards for travel purchases
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards Rate

10XEarn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel partner site
5XEarn 5x points on eligible travel, dining, and gas
1XEarn 1x points on all other purchases
  • Intro Offer
    Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel

    Earn 10,000 Bonus Points
  • Annual Fee

    $95
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    Fair/Good

Why We Chose It

The revamped Wander Card from Credit One Bank earns cardmembers up to 10 points per dollar spent on eligible travel purchases. With no foreign transaction fees, the card is also great for international travel. However, points earned from this card can only be used at a fixed value, so it may not be the best option for those striving to get maximum value from their rewards.

Pros

  • This card has no foreign transaction fees and earns up to 10 points per dollar on travel purchases through the Credit One Bank travel partner site.

Cons

  • While cardholders can earn a significant amount of points on travel purchases, there isn't any way to redeem points from the Wander Card for maximum value (beyond 1 cent per point).
  • Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days and redeem for a $100 statement credit, gift cards, or travel
  • Earn 10x points on eligible hotels and car rentals booked through the Credit One Bank travel site
  • Earn 5x points on eligible travel, dining, and gas
  • Earn 1x points on all other purchases
  • Redeem your reward points for statement credits, gift cards, merchandise, flights, hotels, and more
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Free Online Credit Score and Credit Report summary, terms apply
  • If you are a Covered Borrower under the Military Lending Act, you may get a different offer
  • See Rates & Fees