The PayPal Cashback Mastercard will be great for earning extra cash back without an annual fee if you use PayPal. You earn boosted cash back rewards for purchases using PayPal, solid flat-rate cash back rewards for all purchases and the card integrates seamlessly with the PayPal app.

On top of its impressive 2 percent flat cash back rate on all purchases, the PayPal Mastercard offers a bonus rate of 3 percent cash back on PayPal purchases, including at stores that let you pay using the PayPal app. A powerful combination of rewards like this can set PayPal users up wells fargoto earn outstanding rewards on nearly every purchase they make, whether using PayPal or not.

Most flat-rate cash back rewards cards — like the Wells Fargo Active Cash® Card (earns Cash Rewards) and the Citi Double Cash® Card — only offer a flat rate on general purchases, with no additional bonus categories. Flat-rate rewards programs like these can keep things simple and hassle-free, but you may miss out on a higher rate in your biggest spending categories.

By pairing a flat 2 percent rewards rate on general purchases with 3 percent cash back on PayPal purchases, the PayPal Mastercard combines the best features of flat-rate and bonus-category cash back cards. However, to earn 3 percent cash back, you must be the primary cardholder. You also have to make purchases through your PayPal account, which you can do online or in-store as long as the merchant accepts PayPal as a form of payment. If the store doesn’t accept PayPal, you’ll earn 2 percent cash back.

Rewards cards with boosted cash back rates sometimes have annual fees that eat into your yearly rewards balance. There are exceptions to this rule, like the Blue Cash Everyday® card from American Express and the Citi Custom Cash® Card, but spending caps hamper these cards’ long-term value. The PayPal Cashback Mastercard joins these top cash back credit cards as one of the most generous rewards cards that cost nothing to hold, but leads the pack as a competitor that doesn’t place a rewards cap on its highest rewards category.

The PayPal Mastercard’s lower barrier of entry and long-term savings potential make it a worthy addition to anyone’s wallet who regularly uses the PayPal app to make in-store or online purchases. Although this card may lack value for people who don’t use PayPal, it’s a solid alternative to other flat-rate cash back cards if you want to start using PayPal.

Several popular brands accept PayPal, which means you’ll have enough flexibility to maximize this card’s boosted rate just about anywhere. PayPal lists the merchants that accept PayPal as a payment method on its website. It includes a comprehensive list of popular fashion, travel, entertainment, electronics, and athletic brands. 

This card provides added convenience and functionality by integrating with the PayPal app. You can manage your card, PayPal account, cash back, rewards redemptions and mobile wallet from within the app. Although tracking card activity in issuer-specific applications is not always complicated, the PayPal app gives you a one-stop location for managing your money.

Not only can seamless in-app integration protect you from credit card fraud with PayPal’s security features, like encryption and fraud detection, but you can use the PayPal app to view your card account details and PayPal activity in one place. Plus, you can use the PayPal app to make purchases using your PayPal Cashback Mastercard, meaning you won’t need to enter card details every time you make an online purchase. If you’re wary about online purchases using your credit card, the PayPal app can be a barrier between your card information and the merchants you’re shopping with. Although exceptions to this process exist, merchants typically receive payments from PayPal, and your information remains private.

PayPal also displays your cash back balance in the PayPal app. To redeem your rewards, you just need to select your cash back balance and choose a redemption method. You can redeem cash back rewards for PayPal purchases, a direct deposit to your bank account or as a statement credit. Redemptions for PayPal purchases can be more convenient than standard credit card rewards, especially if you’re a frequent PayPal user. Redemptions for PayPal purchases appear during checkout, where you can apply your rewards balance as a payment method to cover part or all of your purchase.