The PayPal Business Credit Card: How Does It Stack Up?

Brayden McCarthy

Brayden is Fundera's credit cards expert. He's passionate about helping businesses take advantage of the best credit card offers on the market, from the longest 0% intro APR periods to the richest cash back and travel rewards bonuses.
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So, you’re looking for a business credit card.

As you comb through your choices, you might be surprised to find more and more tech companies offering credit cards. From Amazon to Uber—it seems like everyone is trying to make it in the credit card business.

The massively popular mobile payment app, PayPal, is no exception.

But if you’re thinking of making a beeline for the PayPal business credit card, whose official title is the PayPal Extras Mastercard, take a moment to consider the details and its alternatives.

Let’s see what the PayPal business credit card has to offer and how it really stacks up to its competitors:

The Rundown on the PayPal Business Credit Card

First thing’s first, before learning about its competitors, let’s take a close-up look at the fine print that accompanies the PayPal business credit card.

What can a big, technology-based financial entity like PayPal offer business owners with its first business credit card? Here are all the details on what being a PayPal Extras Mastercard cardholder entails:

Rates for the PayPal Business Credit Card

The APR for the PayPal business credit card will set in at a variable that will depend on your creditworthiness when you apply for the card.

As of this writing, the variable APR rests at 19.99%-23.99%.

This is on the higher side for business credit cards, and the PayPal business credit card doesn’t come with a 0% intro APR period. So, the PayPal Extras Card isn’t ideal for business owners who need to carry a balance.

Intro Perks for the PayPal Business Credit Card

Unlike many business rewards credit cards, the PayPal business credit card doesn’t come with a welcome bonus of any kind.

So, if you’re hoping for warm welcome, you might want to look into business credit cards that come with a generous welcome bonus.

Rewards for the PayPal Business Credit Card

When you spend with the PayPal Extras Card, you’ll earn rewards points straight back into your business’s PayPal account.

For every dollar you spend at gas stations and restaurants, you’ll earn 3x rewards. You’ll also earn 2x rewards for every dollar you spend at PayPal and eBay. Beyond those categories, you’ll earn 1x rewards for every dollar you spend elsewhere.

PayPal won’t cap how many points you’re able earn in each rewards tier, which is pretty rare for a business credit card.

With these unlimited rewards points for your business spending, you’ll be able to redeem for cash back, travel, gift cards, and merchandise—so pretty much anything your heart desires.

Annual Fee for the PayPal Business Credit Card

You won’t have to pay an annual fee to become a PayPal business credit card cardholder, so these rewards will come to you for free.

This means that, provided you spend responsibly, the PayPal Extras Card is only earning for your business, with no chance of an annual fee out-valuing your cash back rewards.

The Perks of Spending with the PayPal Business Credit Card

Not quite sure what to think about the PayPal business credit card?

Well, now that we’ve got all the basics covered, we can take a look at the PayPal business credit card’s most noteworthy features.

To start, let’s highlight the top reasons why you might seriously consider the PayPal business credit card as an option for your business spending:

Convenience

Above anything else, one of the main reasons you might seriously consider getting the PayPal business credit card is the convenience that is comes with.

Especially if your business already handles a large amount of transactions through PayPal, this card could seriously streamline your business finances.

This card will be connected to your business’s PayPal account, so if you’re approved, you’ll be able to start spending right away. And approval often comes through within seconds.

If you’re handling a majority of your business’s finances on PayPal already, the PayPal business credit card could be one more step toward consolidating them into one place.

No-Cap Top Earning Categories

The no-cap top earning rewards categories are another huge draw that the PayPal business credit card boasts.

Having no cap on the top tier rewards categories, plus no cap on how many points you can earn total, is surprisingly very rare for a business credit card.

Most business credit cards have either a spending cap on their top rewards categories or an earning cap on how many points you can earn every year.

But the PayPal business credit card has neither.

This is especially good news for business owners who typically spend a lot on gas and restaurant purchases—the PayPal business credit card’s top earning purchases.

The Downsides of Spending with the PayPal Business Credit Card

While those perks are all well and good, every business credit card has to come with its own downsides.

And the PayPal business credit card is no exception.

It’s crucial to consider every business credit card option’s pros and cons, so let’s take a moment to go over the PayPal business credit card’s downsides:

No Signing Bonus

For starters, the PayPal business credit card comes with no signing bonus whatsoever.

Compared to many of its competitors with huge signing bonuses, the PayPal business credit card and its lack of signing bonus proves to be a huge downside.

Though a signing bonus might seem like a frivolous perk, many business credit cards could provide you with upwards of $1,000 worth of value just for spending a certain amount on your business within your first few months with the card.

When you think about a signing bonus as free capital to funnel back into your business, it becomes less of a frill and more of a necessity.

No 0% Intro APR Period

Another crucial perk that the PayPal business credit card is missing?

A 0% intro APR period.

Though, again, a 0% intro APR period might seem like a frill that you don’t necessarily need, if you think about the money it will help you save for your business, then it starts to seem less frivolous.

Plus, with 0% intro APR periods so widespread currently, choosing a business credit card without one almost feels as if you’re losing money when you pay an APR on any balance you have within your first few months with a card.

The PayPal Business Credit Card Compared to Its Competitors

Now that we’ve gone over all there is to know about the PayPal business credit card, we need to see how it stacks up against its competitors.

As you’ve probably already gathered, there’s likely a more lucrative business credit card out there for you.

Unless your business finances already mostly live with PayPal and you really value the convenience that a PayPal business credit affords, then the following no-fee business rewards credit cards are probably better options for you:

The Blue Business Plus vs. the PayPal Business Credit Card

paypal-business-credit-cardThe Blue Business Plus is a business rewards credit card from American Express whose defining feature is its 15-month 0% intro APR.

As long as you make your minimum monthly payments on time, you’ll be able to carry an interest-free balance from month to month during your first 15 months with the Blue Business Plus.

That big ticket item you’ve been putting off buying?

If you qualify for the Blue Business Plus, you’ll be able to buy that big purchase and pay it off gradually over 15 months without paying a cent extra.

Plus, the Blue Business Plus offers sustained rewards for your business purchases. That said, it caps your top rewards at 2x for only the first $50,000 of purchases you make every year with your card. Still, you’ll be able to earn an unlimited 1x rewards for every dollar spent thereafter.

The Verdict: Though the Blue Business Plus caps its top rewards rate, its lengthy 0% intro APR period still makes it win out over the PayPal business credit card.

The SimplyCash Plus vs. the PayPal Business Credit Card

paypal-business-credit-card

The American Express SimplyCash Plus is another business credit card that outshines the PayPal business credit card.

The main reason it wins out? It’s one-two punch of cash back rewards and 0% intro APR.

If you choose the PayPal business credit card over the SimplyCash, you’re missing out on valuable cash back to funnel back into your business.

You’ll earn 5% and 3% cash back on specific spending categories for up to $50,000 in each tier every year. Beyond that threshold and outside of the chosen categories, you’ll earn an unlimited 1% cash back.

Not to mention, the SimplyCash also offers a nine-month 0% intro APR period while the PayPal business credit card offers none.

The Verdict: With a generous signing bonus and a 0% intro APR period, the SimplyCash Plus wins out over the PayPal business credit card.

The Bottom Line for the PayPal Business Credit Card

So, after all of this information, what’s the takeaway for the PayPal business credit card?

The way we see it, the only reason to move forward with the PayPal business credit card over its more lucrative competitors is convenience.

For a busy small business owner, having your business’s finance consolidated in one place could be priceless.

That said—you’ll be able to find a sweeter deal with other business credit cards like the Blue Business Plus and the SimplyCash Plus.

Do the PayPal business credit card’s top competitors sound right up your alley?

Check your options and see what business credit cards you qualify for.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Brayden McCarthy

Brayden is Fundera's credit cards expert. He's passionate about helping businesses take advantage of the best credit card offers on the market, from the longest 0% intro APR periods to the richest cash back and travel rewards bonuses.

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