About PayPal Rewards

PayPal Rewards is a cashback program from PayPal. Once you add an offer, using PayPal at eligible merchants lets you earn extra cashback. The reward rate ranges from 1% to 6%. Cashback is paid in points, and you can later redeem those points for PayPal balance, use them at checkout with PayPal, or redeem gift cards. So when you spend at a merchant, you may be able to stack credit card cashback + PayPal cashback + shopping portal cashback, at least in theory, which is pretty good.

This PayPal Rewards program does not require any extra signup—you just add the merchant offer in PayPal and then spend, similar to AMEX Offers.

On top of that, you can also use PayPal Honey to earn PayPal Rewards. PayPal Honey is like a cashback website browser extension and also has an app version. We’ll cover it below.

Usage Guide

Merchants

I checked and there are still quite a few usable merchants, like Target, Uber Eats, Dell, etc. But most of these offers are time-limited and seem to refresh about every 7 days, so you’ll probably need to keep adding them.

Take Walmart, for example: you only need to add that offer to your PayPal account. Note that these offers are generally online only, so you usually won’t get cashback if you pay with PayPal in a physical store.

Also, whether you can get cashback depends on whether the merchant is giving cashback for that specific transaction. For example, some merchant categories do not offer cashback, and in that case you can’t get it from PayPal either. You need to test this yourself—both the merchant and PayPal only list the terms.

Redeeming

100 points = $1

You can redeem directly to PayPal balance, and then transfer it directly back to your bank. This is the easiest method.

PayPal Honey

PayPal Honey is a cashback-style service that PayPal launched before. It has both an app and a browser extension. In addition to providing merchant cashback, it can also offer some exclusive discounts. But note that if you use PayPal Honey, you cannot stack cashback with another cashback site. The browser will automatically hijack cookies and route through the PayPal Honey channel. For the app, you need to enter through the app’s merchant button to receive cashback.

Honey also has many merchants, but it does not seem to have a major advantage compared with other cashback sites.

When you click a merchant, you can see the PayPal Honey extension next to it.

That said, this exclusive discount looks kind of interesting.

For redemption, cashback earned through PayPal Honey is also PayPal Rewards—you just need to link these two accounts.

Conclusion

Not a huge payout, but it is still a way to earn extra cashback.