PayPal has launched its own loyalty reward scheme effectively offering cashback for all payments made.
It now also offers its own debit and credit cards, which can be used physically in stores or through a mobile phone's wallet.
Open the PayPal app today and you might see some significant new features. The payment service has introduced a couple of major benefits for UK users – including its own loyalty scheme.
PayPal+ is available for free for all customers. In fact, it will even give you money back, as it rewards just about every payment made online and, for the first time, in physical stores.
That's because, as well as the loyalty programme, you can now apply for a PayPal debit and/or credit card – enabling you to pay in high-street shops, as well as when purchasing items through online stores that don't traditionally carry a PayPal button.
What's more, when using one of the PayPal cards, you will earn additional loyalty points that can be traded in for cash against future purchases.
For example, pay using the debit card – either a physical version or one stored in your phone's digital wallet – and you get 10 points per purchase. Pay using the credit card and you get one point.
Each point is worth 1p and you can choose to redeem as many points as you like against purchases whenever you fancy. Save up the points and you can splurge them all at the same time – but T3 has been told that there's no restrictions on when or how many you use.
You can also earn points when using PayPal online for most transactions.
Points can also see you move up membership tiers – starting at blue, then gold, then black. Like airline tiers, these are reset each year, but those you earn today will be carried over through 2026 as there's only a few weeks left of 2025.
Improved tiers also earn you improved benefits, such as additional cashback incentives for points.
PayPal+ is completely free to sign up for – you just need a PayPal account – and you'll be asked to opt in when you next open the app. If that hasn't happened, just check whether you need to download an update on your phone or tablet.
How do PayPal debit and credit cards work?
All PayPal users will be offered the choice of adding a debit card to their account. Also an opt in service, you can choose to have a physical card or just add it to the likes of Apple Wallet or Google Wallet.
You can then pay in high-street stores or anywhere that accepts Mastercard worldwide, without PayPal taking a transaction fee. You can also use it online when PayPal isn't a checkout option, such as on Amazon which has traditionally never accepted PayPal.
It will take money from your chosen payment source, such as directly from your third-party bank account. Alternatively, you can top up your PayPal account and use those funds to pay for items.
The PayPal credit card works in a similar way. It can also be used to pay anywhere that accepts Mastercard, although it uses a PayPal credit account instead. If you don't have one already, you will need to apply first.
At present, PayPal's pay in three scheme doesn't work with the new credit card, but you do get 0% interest on purchases as long as they have been paid for in full within four months.
You should see the new features on the iPhone and Android app in the UK today.
