Want to keep it simple when it comes to your credit card?

Need a card to complement other cards you already have in your wallet?

The makes for a great card on its own, or paired with another one you already have.

It’s one of our top no fee cash back credit cards, and one of our top cash back cards as well. Let’s dive in and see what makes this card special.

What is the PayPal Mastercard?

The PayPal Mastercard is a basic cash back credit card with no annual fee.

Product overview

Credit Card Feature What The PayPal Mastercard Offers
Welcome bonus offer None
High flat rate or categories that earn bonus rewards High flat rate
Easy to redeem cash back Yes
Insurance coverage None
Foreign exchange fees None
Intro balance transfer offer No
Purchase intro rate offer No

The pros and cons of the PayPal Mastercard

With the , there’s a lot we love about the card, but there’s definitely some room for improvement as well.

So what do we love?

The earn rate is one of the best out there. You’ll earn 2% cash back on every purchase you make. It’s a high overall earn rate not matched by many cards.

And it’s for no annual fee. And as a bonus, it has no foreign exchange fees as well.

So you have:

  • high earn rates,
  • no fees of any kind, including no foreign transaction fees.

And what could be improved?

But that’s where the pros end with this card. And although those are great benefits, it’s missing features other cards have.

The first is insurance. At a minimum most cards have extended warranty and purchase protection coverages. However, this card doesn’t even have those.

The next missing features is any sort of balance transfer offer. Most cash back credit cards have an introductory balance transfer offer, with a rate of 0% and a length of at least 12 months. The PayPal Mastercard doesn’t have a balance transfer offer. In fact, it doesn’t have a balance transfer interest rate at all.

Finally, you’re also required to have a PayPal account to have the card. And while that’s not a deal breaker by any means, you need the account because all of your rewards will get deposited into your PayPal account when you like.

So to use your rewards, you’ll have to either:

  • make a purchase using your PayPal account balance, or
  • withdraw the funds to your bank account.

It’s not a big deal, but it’s an extra step towards using your rewards.

You can learn more about how PayPal works here.

How does it compare to other top no fee cash back credit cards?

So how does the compare to other top no annual fee cash back cards?

Here are a couple of its top competitors.

Related: Top 1.5% Cash Back Credit Cards With No Annual Fee

Citi Double Cash Card

The is very similar to the PayPal Mastercard.

You earn the same 2% cash back on your purchases, but it’s earned a little differently. You’ll get 1% cash back on your purchases, and another 1% when you make your payments.

However, your cash back rewards are easier to use. You can choose between:

  • statement credit,
  • direct deposit into a Citi bank account, or
  • checks.

It’s much easier to get your cash back rewards right into a bank account, if you have a Citi bank account or by getting a check sent to you.

The card also provides some basic purchase protection and extended warranty insurance. And for anyone who has credit card debt, there’s an introductory balance transfer of 0% for a stunning 18 months.

One feature it’s missing? No discount on foreign exchange fees. This card will charge the normal 3% rate.

Related: 6 Ways To Cash In On Your Cash Back Credit Card

Blue Cash Everyday Card from American Express

For our other comparison, we’ll look at , which has a few different categories for earning cash back.

For rewards, here’s what you’ll earn:

  • 3% at grocery stores, up to $6,000 in annual spend,
  • 2% at gas stations and at select U.S. department stores, and
  • 1% cash back on all other purchases.

So how does it compare to the PayPal Mastercard? Based on our typical $2,000 monthly spend, you’re not going to earn as much. This card will only get you around $360 per year, an overall return of 1.5%.

It also charges a foreign exchange fee of 2.7%.

But it has improvements in other areas.

There’s a great balance transfer offer – 0% for 15 months. And for new purchases, you’ll also pay 0% for 15 months.

The insurance is also better – 4 types are included:

There’s not just purchase insurance, but some travel coverage as well.

And finally, when it comes to getting your rewards, you can claim a statement credit anytime your rewards balance reaches at least $25.

Pro tip: Since all of these cards have no annual fee, combine this one with either the or .

You can use the at grocery stores and gas if you like, and the other card for everything else. This way, you’re earning at least 2% on every purchase, while earning an additional 1% on groceries.

Related: 42 Best Instant Approval Credit Cards In 2020


The is a great cash back card that excels in rewards and fees.

But, it’s lacking in other areas, such as insurance and interest.

With that said, it makes a great pairing with almost any card with its high overall earn rate and no annual fee.

What are your thoughts on this card?

Let us know in the comments below.