New PayPal Cashback Mastercard, Earn 2% Cashback Everywhere

PayPal is introducing the PayPal Cashback Mastercard that offers customers 2 percent cash back on purchases with no annual fee. The rewards will appear in users’ online wallets and can be spent immediately on additional PayPal purchases or transferred to a bank. The PayPal Cashback Mastercard is issued by Synchrony Bank.

The card was previosuly available to some users in the last few months as a test run, but it is now publicly available. There’s currently no sign-up bonus offered on the card and I don’t expect to see one in the future either. Synchorny Bank is more lenient credit card issuer so if you have a decent credit score you should be approved.

The card is similar to Citi Double Cash or the U.S. Bank Fidelity card that offer straight 2% cash back on all purchases. But the PayPal Cashback Mastercard has no redemption threshold.

This is not a groundbreaking new product but it could be popular with consumers who still prefer straight cash back cards in general. Almost 70 percent of consumers say cash back is their favorite type of credit card rewards, according to a June survey by card processor Total System Services Inc.

It’s good to see yet another 2% cash back card, but there’s other cards out there that can get you an even better cash back rate, from USAA and Alliant. You can also see my list of 2%+ credit cards here.