Author: Kelly Carter
It’s the holiday season, and you’ve probably made a list of gifts for your loved ones. While you’re still putting together your online shopping list, it might be exciting to know that you could potentially save money by using PayPal.
Last month, PayPal launched its Rewards Program, allowing users to use their PayPal app to shop, save, monitor, earn, and redeem rewards and offers. The Rewards Program also functions as a platform for Pay With Points and a shopping portal.
This article will cover everything you need to know about PayPal’s Rewards Program and how to use it to save money.
What Is PayPal Rewards Program All About?
For the longest time, PayPal was merely a payment method for online shoppers. However, on October 17, the financial services platform announced its Rewards Program, which allowed users to earn and redeem points when making purchases online. PayPal Rewards, in a nutshell, combines PayPal’s vendor offers, cashback earnings, and shopping products into a single experience.
You can earn rewards using either the PayPal browser extension or the mobile app (Android and iOS). However, if you use the mobile application, you may not be able to browse other shopping sites before making purchases.
Furthermore, because PayPal’s browser extension works as a shopping portal, you probably won’t be able to merge PayPal Rewards with other rewards platforms. Rewards platforms such as Rakuten or SwagBucks. So, before you proceed, try to confirm which platform is providing the best rewards.
How is the PayPal Rewards Program different from other platforms?
For starters, you can combine your rewards from different PayPal products and shopping experiences. Another advantage of the PayPal Rewards Program is the ability to redeem rewards points across the PayPal ecosystem without regard to category or minimum amounts.
Furthermore, after redeeming your points for cash back into your PayPal balance, you can transfer the funds to your linked bank account, deposit the funds into your PayPal Savings account, contribute to a charity, or send the funds using another peer-to-peer (P2P) platform.
How To Save Money This Holiday Using PayPal Rewards Program
PayPal Rewards works similarly to other rewards programs in that you can only earn rewards when you make qualifying purchases (purchases from participating merchants). After you’ve determined that the item you want to purchase from a merchant is a “qualifying purchase,” you should look into how much cash back (earning rate) the vendor offers on the product.
Depending on the vendor, the earning rate can range from 1% to 10%. Additionally, remember that this earning rate is subject to daily change, so check back frequently to see if your favorite store has increased its earning potential.
Additionally, PayPal will make clear how many points or amount, if any, you will accumulate in connection with a qualifying purchase or Rewards offer in the following ways:
- As a fixed percentage rate (for example, 5%),
- As a percentage reward rate range (for example, 5%-10%)
- As a predetermined number of points (e.g., 200 points)
- As a set of points (e.g., 200-500 points)
- In terms of cashback percentages or dollar amounts
By choosing the third icon from your phone screen’s bottom, you can find deals on PayPal (Tip: the icon looks like a price tag). Additionally, there are no earning caps, so you can profit from every purchase you make all year long.
How to redeem your earnings
PayPal’s Rewards Program aims to provide users with flexibility and the ability to save money. As a result, there are no transfer partners or sites where you can redeem your rewards.
When you accumulate rewards points, you can apply them to your future purchases to reduce the cost. Your rewards can also be redeemed for cash that will be applied to your PayPal account balance.
Furthermore, you can send the money to your linked bank account after it appears in your PayPal account. Simply put, you can exchange your rewards for cash or use them at the PayPal checkout when making online purchases.
When it comes to online shopping, there are never enough options to earn and redeem points, so there’s always room for a new rewards program. The PayPal Rewards Program allows you to double or triple dip when purchasing online. However, how much you earn with this Rewards Program is determined by what your favorite store offers, so your earnings may vary. You can also keep the cash back you’ve made in your PayPal Rewards profile for upcoming purchases or redeem it into your PayPal account balance. You can then withdraw the funds into your bank account and use them as you see fit.