PayPal Just Upgraded Its Cash Back Credit Card: Earn 3% Cash Back and a New Welcome Offer

A photo to accompany a story about the PayPal Cashback Mastercard Rafael Henrique/SOPA Images/LightRocket via Getty Images
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PayPal’s credit card is getting an upgraded cash back value.  

This week, the digital payments company announced changes to its PayPal Cashback Mastercard®, which include a new 3% bonus category and cash welcome offer. Compared to other cash back credit cards, the new card offers one of the highest flat cash back rates. 

Now, you’ll earn unlimited 3% cash back when you use your card to pay with PayPal, and you can qualify for a $100 cash bonus after you spend $500. That’s in addition to the unlimited 2% cash back everywhere the no annual fee card already offers.

The upgraded card will be available to starting next week for new cardholders, according to a PayPal representative. Existing cardholders will automatically receive the expanded 3% rewards.

Here’s everything you need to know about the upgraded PayPal Cashback Mastercard and what to keep in mind before you apply. 

What to Know About the Upgraded PayPal Cashback Mastercard 

The revamped PayPal card offers great rewards on every purchase, a welcome bonus, and several ways to redeem. To get the most from the new 3% category, you’ll need to use PayPal as your primary payment where available online and in stores. 

If you already have a PayPal card, you’ll automatically receive the ugraded cash back benefits. For new cardholders, the upgraded card will be available next week, according to PayPal, though you can sign up for the waitlist now through the PayPal app or your online PayPal account. Then, you’ll be notified via email when the card is released.

Here’s what else you need to know about this cash back card: 

Cash Back Rewards 

The PayPal Cashback Mastercard offers 2% cash back on everything you buy. The new version will still offer flat unlimited 2% back, but you’ll also earn a boosted 3% back on purchases made with PayPal. That includes online, mobile, and in-store payments with the PayPal QR code where eligible. 

PayPal is a payment method option at a long (and growing) list of retailers, including eBay, Target, Walmart, Apple, Home Depot, and more.

Cash rewards are earned daily with the card, after eligible transactions are complete and post to your account. You can redeem them toward your PayPal balance or transfer your rewards to a bank account or debit card linked to PayPal.

Welcome Offer 

The upgraded PayPal card offers a $100 cash bonus after spending $500 within 90 days of account opening — that’s in line with some of the best cash back cards’ current offers. Previously, the card offered no cash bonus. Plus, you’ll still earn rewards as you earn your welcome bonus. 

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PayPal Cashback Mastercard®

PayPal Cashback Mastercard®

Editor’s Score: (3.7/5)
  • Intro offer:
    N/A
  • Regular APR:
    19.99%, 23.99% or 26.99% (Variable
  • Recommended credit:
    670-850 (Good to Excellent)
  • Learn more externa link icon At our partner’s secure site
Learn More externa link icon
Wells Fargo Active Cash® Card

Wells Fargo Active Cash® Card

Editor’s Score: (4.6/5)
  • Intro offer:
    $200 cash rewards
  • Annual fee:
    $0
  • Regular APR:
    15.74%, 20.74%, or 25.74% Variable APR
  • Recommended credit:
    670-850 (Good to Excellent)
  • Apply Now externa link icon At Wells Fargo’s secure site See Rates & Fees.
Learn More externa link icon
Citi® Double Cash Card

Citi® Double Cash Card

Editor’s Score: (4.4/5)
  • Intro offer:
    N/A
  • Annual fee:
    $0
  • Regular APR:
    14.74% – 24.74% (Variable)
  • Recommended credit:
    670-850 (Good to Excellent)
  • Learn more externa link icon At our partner’s secure site

Who Is PayPal Cashback Mastercard Best For?

Editorial Independence

As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships.

If you already use PayPal regularly when you shop online, the PayPal Cashback Mastercard may be a good fit for your wallet. 

Some brick-and-mortar retailers also offer PayPal’s latest payment method, an in-store QR code. You simply scan the QR code to use your PayPal account and linked card to pay in-store with merchants, like CVS and Walmart. Now, you’ll earn 3% on these purchases too.  

Plus, you’ll still earn 2% cash back or cash rewards on purchases — which is already on-par with some of the best flat cash back cards available today, like the Wells Fargo Active Cash Card and the Citi® Double Cash Card

However, make sure this is the right cash back option for you before you apply. Flat cash back offers simple rewards on every purchase, but you may get more value from higher rewards in categories where you spend most with a tiered bonus category card. Another thing to consider is added benefits you might benefit from, like travel protections or annual credits. Compared to some other cash back cards, the PayPal Cashback Mastercard doesn’t have many added benefits.

That being said, the PayPal Cashback Mastercard is a great no annual fee option to use as your primary card for everyday purchases, especially if you do much of your shopping online or with retailers where PayPal is accepted. As a flat cash back card, it can even help you supplement the rewards you already earn with other cards, to ensure you maximize every purchase.