Best Deal Ever? Earn 20% Cash Back on Pay Later Purchases with PayPal

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PayPal is offering eligible users 20% cash back when using the Pay Later option at checkout, and if you’ve been eyeing a holiday purchase, this might be one of the best ways to stack savings. Based on a recent deal shared by Slickdeals user E28M5, the offer runs through December 8 at the higher 20% rate before dropping to 5% through December 31. In this article, we’ll walk through how the deal works, key limitations, and insights pulled from community comments to help you decide whether it’s worth trying.

Eligibility Requirements

To see if you’re eligible, visit your PayPal Rewards section and look for an offer labeled “20% cash back on Pay Later purchases with PayPal.” Be sure to click Save Offer before making a purchase. The cash back applies when you select Pay Later specifically—not the regular PayPal checkout option—and is valid on qualifying online or in-store transactions.

What the Community Is Saying

The community confirms that the 20% reward applies to up to $1,250 spent per transaction, potentially earning you $250 back on a single order. One Slickdealer noted that the offer appears to be usable multiple times, though that’s not officially stated. Another reminder from discussions: activating Pay Later may require a soft credit check, which won’t affect your credit score, but you must be at least 18 to use it.

Users also mentioned that the offer works only with merchants that support PayPal Pay Later, so availability can vary.

You can read more in the deal thread, but the fact that there are over 2,500 comments speaks volumes about how popular this offer is.

Bottom line: if you’re comfortable using Pay Later and already planning an eligible purchase, this is an unusually high cash-back offer with strong stacking potential. Just make sure the offer shows in your account, verify the retailer supports Pay Later, and avoid stores that could trigger unexpected transaction types.