PayPal and Venmo have a lot in common: PayPal owns Venmo, they’re both ways to quickly send your roommate your share of the water bill, and they both offer no-annual-fee cash-back credit cards issued by Synchrony. And those cards even earn the same baseline rewards rate on spending done via their namesake payment platforms.
The primary difference comes down to the cards' rewards rates on other spending: The PayPal Cashback Mastercard® offers a simple, straightforward flat rate on all non-PayPal purchases — good for those who don't want to track additional bonus categories — while the Venmo Credit Card offers the chance to earn higher rates in a few spending areas, for those who don't mind putting in some extra tracking work.
Unlike more traditional cash-back credit cards that let you redeem rewards for a statement credit or direct deposit into your bank account, the PayPal Cashback Mastercard® and Venmo Credit Card require you to have a PayPal or Venmo account, respectively.
You can open those accounts before applying for one of these cards if you wish, but first consider more valuable alternatives and rewards-maximizing companions.
Here's a look at how the cards stack up:
How the cards compare
Annual fee
Welcome bonus
Ongoing rewards
- 3% cash back when you pay with PayPal at checkout.
- 1.5% cash back on all other purchases.
- 3% cash back on dining and entertainment, including streaming. (You can get an extra 1% back — for a total of 4% cash back in these categories — when you split the transaction and get paid back in the app.) Terms apply.
- 3% cash back when you pay with Venmo at checkout.
- 1% cash back on all other purchases.
How to redeem rewards
Still not sure?
Why choose the PayPal Cashback Mastercard®: Solid, uncomplicated rewards on all purchases
If you want a simple, steady rewards rate without having to think about where and when to use your card, the PayPal Cashback Mastercard® earns 3% cash back when you pay with PayPal at checkout, and 1.5% back on all other purchases. That makes it a solid (though not spectacular) all-around choice if you only want to manage one card, especially if you pay through PayPal often. It could also make it a fitting companion for another card that earns higher rewards in specific spending categories.
The PayPal Cashback Mastercard® can be used instantly upon approval for purchases made via PayPal.
The card may also periodically offer welcome bonuses for a limited time. If you didn’t get it when such an offer was available, keep in mind that a card earning 1.5% back on all purchases — with a bonus — may be a better deal for you, depending on your spending.
Don’t want to create a PayPal account?
The Wells Fargo Active Cash® Card earns 2% cash back on all eligible purchases. It also features a welcome offer: Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months. The annual fee is $0.
Why choose the Venmo Credit Card: Dining and entertainment rewards
The Venmo Credit Card is built for on-the-go management and cost-splitting. It, too, offers instant access to a virtual card upon application approval while you wait for the physical card to arrive. You can track your spending and pay your credit card bill through the Venmo app.
Like PayPal's card, the Venmo Credit Card is a good option for heavy users of its platform. And if you frequently spend on dining and entertainment, it can also be rewarding, though perhaps not as valuable as you may think. The extra 1% for splitting eligible purchases through Venmo might draw you to this card, but consider how often you actually split purchases, and how often you do so in those specific categories. Other cash-back credit cards can offer similar or better value without the hoops to jump through.
Don’t want to create a Venmo account?
The Capital One Savor Cash Rewards Credit Card earns 3% cash back on dining, entertainment and popular streaming services, but also at grocery stores. In addition, it earns 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel. All other purchases earn 1% back. It has a $0 annual fee, plus a welcome offer: Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening.
Which card should you get?
The simple answer is whichever payment platform you're most comfortable with (or don't mind joining). If that's not something you're willing to do, you might get similar value from a credit card that earns rewards on online spending.
Apart from that, just know that the PayPal Cashback Mastercard® is simpler to manage, while the Venmo Credit Card can be potentially more valuable for those wiling to juggle additional bonus categories.
