Everything you need to know about PayPal Rewards [2023]

Adam Rozsa

This guide covers all you need to know about the new PayPal loyalty program, including where to find cash back offers and how to redeem PayPal Rewards.

And because PayPal may not be right for every online transaction, we’ll also introduce Wise and the Wise Account as a great alternative if you’re looking for low-cost international transfers and ways to spend in foreign currencies - more on this, later.

Register a Wise Account today

What is PayPal?

PayPal is one of the largest payment platforms available globally, offering everything from secure online shopping, to local and international transfers, credit services and more.

You can easily send a PayPal payment, orrequest a PayPal payment from someone else. Transfers can be made locally in the US, or you can also make a PayPal international transfer. However, in this case, PayPal’s international payment fees and PayPal currency conversion fees apply, which can be pretty costly. We’ll cover how you can avoid this with Wise low-cost international transfers a little later, too.

💡Learn more about PayPal and how it works here.

What is PayPal Rewards?

PayPal Rewards is the new PayPal loyalty and customer reward program, which replaces PayPal Gold. If you had PayPal Gold points, they will be transferred over to your new PayPal Rewards account.

The new PayPal Rewards¹ points scheme launched in the US in October 2022², as a way to help customers save money. Earn PayPal Rewards points on eligible purchases, and convert them back to cash for spending, or to be deposited to your bank account. Customers can start earning PayPal Rewards right away, and view and manage their balance on the PayPal app.

How does the PayPal Rewards program work?

PayPal Rewards lets you earn rewards points when you spend in person or online with PayPal. You can then redeem your PayPal points for cash back, or in other forms like a bank deposit, or a payment to your favorite charity. 100 PayPal Rewards points can be redeemed for one dollar.

How can you earn PayPal Rewards points?

Earn points when you checkout at online stores that accept PayPal, when you spend with the PayPal app, or when you use the PayPal honey browser extension. You’ll also find extra chances to earn points based on how you interact with your PayPal account, customer referrals and special offers.

Is there a fee to use PayPal Rewards?

There is no fee to use PayPal Rewards. As long as you have a PayPal account, you’re ready to start earning points on your eligible spending.

Do I need the PayPal App to use PayPal Rewards?

You do not have to have the PayPal Rewards app to use PayPal Rewards. However, PayPal recommends the app as a good way to view and manage points earned, and as an easy way to choose how to redeem points.

How can you redeem your PayPal Rewards?

Redeem your PayPal Rewards to pay when you checkout online, or convert to cash at the rate of 100 points per dollar, to send to friends, withdraw to your bank or make a charity donation.

Get a Wise Account today - you may save money

PayPal is a great option for shopping online - and can be even more rewarding with PayPal Rewards. However, when it comes to sending money overseas and spending in foreign currencies, PayPal may not be your best option.

Check out the Wise Account for low-cost international transfers and multi-currency accounts instead. A couple of key features:

  • Send, convert and spend up to 50+ currencies
  • Make transfers to over 70 countries
  • Low, transparent transfer fees¹
  • Optional Wise debit card for one-time fee of $9¹.

Here is also a comparision - see how much you can save with Wise:

The true cost of sending USD to GBP

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

What is PayPal Pay with Rewards?

PayPal Pay with Rewards³ lets you shop online with PayPal and your eligible credit card, and pay using credit card rewards when you check out. This means you can add your credit card to PayPal, automatically collect reward points, and then control when and how you redeem them on a future PayPal purchase.

How does PayPal Pay with Rewards work?

To use PayPal Pay with Rewards, you’ll need to link an eligible credit card to your PayPal account, and then select the option to activate Pay with Rewards. Once you’ve done this, you’ll see the option to pay all or some of future eligible purchases with the reward points you’ve collected. Alternatively, you can use the value of your rewards points to convert back to cash to deposit to your bank, or send to others.

Bottom line

PayPal Rewards is the new reward and loyalty program from PayPal, which replaces PayPal Gold. You’re eligible to use it as long as you have a PayPal account, and can collect points when you shop online and in-app, and when you use the PayPal Honey browser extension. You’ll then be able to credit your points against future purchases, or convert to cash to deposit to your bank or send on to someone else.

Sources used:
  1. PayPal Rewards
  2. PayPal Rewards - press release
  3. PayPal Pay with Rewards

All sources checked on 31 January 2023

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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