Revamped PayPal Cashback Card Will Earn 3% on Purchases Via PayPal

UPDATE May 30, 2024: This article was originally published on April 5, 2022, but has been updated to reflect changes in the card's rewards structure.

Beginning April 5, 2022, the PayPal Cashback Mastercard®, issued by Synchrony, will earn 3% cash back when used via PayPal at checkout. (For a time, that was on top of earning 2% back on all other purchases, although that rate dropped to 1.5% in May 2024.)

Still, there is no cap on the cash-back rewards you can earn, and you can use PayPal for in-store, online or mobile purchases.

PayPal is accepted at a wide variety of merchants, including eBay, Zappos, Netflix and Etsy, along with airlines including American, United and JetBlue.

» MORE: How does PayPal work?

The annual fee will remain $0, and you can redeem cash-back rewards in any amount without having to accumulate a minimum reward balance. Your earned rewards will be available for redemption around three days after an eligible purchase. In addition to refreshing the rewards of the PayPal Cashback Mastercard®, the PayPal app and website have updated their design to make managing rewards, purchases and payments a more seamless experience.

If you already have the PayPal Cashback Mastercard®, you’ll automatically be upgraded to the card’s new rewards terms.

New applicants can sign up for a waitlist to receive more information about the card’s availability. It will be open to a select group at first but will become more available within a few weeks. Once you’re able to apply, you can do so through the PayPal app or on paypal.com. For a limited time, new cardholders can earn a sign-up bonus of $100 cash back when you spend $500 in the first 90 days. Note that you must have a PayPal account to be eligible for the card.