PayPal+ Rewards: How It Actually Works

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PayPal has quietly launched a loyalty scheme in the UK called PayPal+, and if you pair it with the free PayPal Debit Card, it effectively works like a cashback card.

Step 1 — Join PayPal+ (Free)

Open the PayPal app → tap PayPal+ → opt in.

Anyone with a standard personal PayPal account can join.

*At the moment it looks like this will only be available to select customers - feel free to check!

Step 2 — Order the PayPal Debit Card (Free)

This is a real physical Mastercard linked to your PayPal balance.

• FREE to order

• FREE to use in the UK

• No monthly fees

• Works anywhere Mastercard is accepted (in-store + online)

You can use it just like your normal bank card.

How the Rewards Work

Once you're in PayPal+, you earn points when you spend with the PayPal Debit Card.

Base Earn Rate (This is the important bit)

Where You Use It	Earn Rate	Works Out As
In-store (any card terminal)	10 points per £10 spent	≈ 1% cashback
Online via PayPal Checkout (balance covers full amount)	10 points per £10 spent	≈ 1% cashback
Online via PayPal Checkout (balance does NOT cover full amount)	1 point per £10 on backup funding	≈ 0.1% cashback on that portion

Real Talk:

• In-store = always full cashback.

• Online = keep your PayPal balance topped up (or turn on auto-reload in the app) to ensure you don’t drop to the lower rate.

How Much Are Points Actually Worth?

This is where tiers come in.

PayPal+ Tier	Value of 10,000 Points	Effective Cashback
Blue (everyone starts here)	£100	1% cashback
Gold	£120	1.2% cashback
Black	£130	1.3% cashback
Gold/Black on Groceries & Dining	£150	1.5% cashback

So:

• Most people get 1%

• Heavy PayPal users can climb to 1.2%–1.3%

• Food shops & restaurants can hit 1.5% at higher tiers

Example

Spend £200 in Tesco using the PayPal Debit Card:

• Blue Tier → ~£2 back

• Gold Tier → ~£2.40 back

• Black Tier → ~£2.60 back

• Gold/Black Grocery Boost → ~£3 back

Stack this with store loyalty points and you’re getting points on points on points.

The Key Advantages

✅ Free card
✅ Works anywhere Mastercard is accepted
✅ No credit check / no new bank account needed
✅ Stacks with supermarket loyalty & restaurant reward apps
✅ Earns cashback even for small everyday spending

Things to Know

• You won’t earn on gambling, dating sites, pawn shops etc (standard MCC exclusions).

• Points expire only if you don’t earn or redeem for 3 years.

• There is no cap on how many points you can earn.