Things You Must Know About Paypal Mastercard Vs Paypal Credit in 2020

Most people think about PayPal as only a payment method that they can use for online shopping or online transactions. It’s true that using PayPal for any kind of online transaction can be a big advantage, but there is more to it. PayPal offers a ton of services, credit cards, and Mastercard are among them, which is often overlooked, and people don’t seem to be taking advantage of it. 

You can get credit cards and Mastercard from PayPal other than using it as a payment method. However, as a platform with different features than other companies, it also differs in the credit line and functions differently. If you’re wondering which one to choose between PayPal Mastercard vs PayPal credit, I’m here to help. Stick to the article as I guide you through the differences between them and help you choose the right thing. 

PayPal Mastercard vs PayPal credit

Like any other typical credit card, you can use PayPal as your daily driver for any purpose, whether shopping online or in-person stores. However, choosing between PayPal Mastercard vs PayPal credit as your daily driver can be difficult. Bellow, I’ll help you understand how they differ, how they function, and which one you should choose the next time:


What is?

PayPal Mastercard

The PayPal Mastercard, aka PayPal Cashback Mastercard, works like any other traditional credit card you can use at any physical store for in-person purchases. It pulls the fund from your PayPal account, but via a Synchrony bank, associated with PayPal. The PayPal Mastercard comes with a flat 2% cashback reward when you use it for any purchases. As you’re using it online and offline, the chances are higher to earn more cashback than PayPal credit.

PayPal credit

The PayPal credit is also a card that PayPal provides in association with Synchrony Bank. You get a digital credit line that you can use as a regular credit card, just like the Mastercard. With the credit card, you don’t get that much of rewards where the Mastercard offers a lot. You also don’t get a chance to upgrade your Paypal account to Paypal cash or cash plus to avail the rewards through your Balance o PayPal. 

How does it work?

PayPal Mastercard

With a PayPal Mastercard, you can swipe or dip your card, put your billing information, and pay for physical shopping or online purchases. You will connect it to your PayPal account, and fund the card with your PayPal balance to pay for any physical store. PayPal Cashback Mastercard is a great option if you’re interested in earning regular cashback without any hassles. The flat-rate cashback offer makes it the best option for those who aren’t that card savvy and love simplicity.

PayPal credit

With the Paypal credit, the process is almost like the Mastercard, but with a shortcoming, you cannot use it where PayPal isn’t accepted. You will enter the credit line number, Pay with your PayPal balance, and get credit like a regular card. You can use the same credit again without applying for a new one. You get a 0% introductory rate from most of the other cards, and the promotional rates are only for the first few months. With PayPal Credit, you get an interest-free purchase option over and over as long as the transaction is above $99.

Where Can You Use?

PayPal Mastercard

You can use the PayPal Mastercard anywhere as a regular credit card, whether it’s a physical store or an online shop. The best thing about this card is that you can use it anywhere, no matter the vendor accepts PayPal or not. Another good thing about it is that you can use it internationally where Mastercard is available. However, you have to consider the international transaction fees when you’re traveling overseas. 

PayPal credit

With the PayPal credit line, you can use the credit only for the online purchases and shops where PayPal is accepted. After connecting it to your PayPal account, you can use it only for the stores that accept PayPal both online and offline. However, as you’re not carrying any physical card and use a credit number, there are no chances of losing your card or getting it stolen. 


PayPal Mastercard

With the Paypal Mastercard, you can send money to somebody with a regular fee of 2.9% and an extra $0.30 per transaction. Depending on your credit card worthiness, it offers an APR percentage of 28.74%, 25.74%, and 21.74% variables. You have to pay an extra $39 for late payment, but there are no annual fees associated with the PayPal Mastercard. 

PayPal credit

With the Paypal credit, you get the cash advance and the APR for purchases percentage of 25.74% depending on the prime rate. The late payment fees are the same as Mastercard, $39, and there are no annual fees with it. You’ll start with a $250 of minimum credit; as PayPal says, you’ll get a credit limit increment gradually. 


PayPal Mastercard

The cashback Mastercard from PayPal gives you the generic protections that Mastercard provides. You will get the ID theft protection, Mastercard airport concierge, and all the Mastercard global services to make you feel more secure. 

PayPal credit

With the PayPal credit, the protections are a little more extensive, with PayPal’s regular user benefits and protection plans. You will get full protection from PayPal for all the eligible purchases along with reimbursement for the shipping cost and purchase amount. However, keep the items that aren’t eligible for the protection plan, such as custom-made goods, motor vehicles, real estate, and prepaid debit cards. 

Final thought

PayPal doesn’t only give you a better online transaction experience, it also helps you with offline and in-person transactions. Choosing the right one between PayPal Mastercard vs PayPal credit can be a daunting job if you don’t know what you are looking for. You can use the credit line again and again without applying for a new credit every time you tent to use it. 

On the other hand, MasterCard gets you better promotions, which is great for those who have less technical knowledge about it. However, if you’re still confused about the best overall, and seeking suggestions, I’d suggest you get the Mastercard. It gets you better usability at local and online shops, whether PayPal is accepted or not with 2% flat cashback.