How To Guides
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.
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 |
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.