You can use your PayPal wallet at physical stores in three ways: scanning a QR code through the PayPal app, tapping to pay with a PayPal card added to your phone’s mobile wallet, or swiping a physical PayPal debit or credit card. Each method pulls from your PayPal balance or a linked funding source, and none of them carry a transaction fee for domestic purchases.
Pay With a QR Code in the PayPal App
QR code payments are the most direct way to spend your PayPal balance in a store without carrying a card. Open the PayPal app on your phone, tap the option to scan or show a QR code, and either scan the code the merchant displays at the register or show your own code for the cashier to scan. The payment pulls from your PayPal balance first, then falls back to whatever backup funding source you’ve set (a linked bank account or card).
The catch is that QR code payments only work at stores that specifically accept PayPal at checkout. National chains that support this include CVS, Macy’s, Foot Locker, Five Below, Big Lots, Panda Express, and Bloomingdale’s, among others. Smaller retailers may also accept PayPal QR codes if they use a compatible point-of-sale system. If you don’t see a PayPal logo or QR code option near the register, the store likely doesn’t support it.
Tap to Pay With Your Phone
If you have a PayPal-branded card, you can add it to Apple Pay, Google Pay, or Samsung Pay and tap your phone at any contactless terminal. This works at far more locations than QR codes because the payment goes through the Mastercard network, not through PayPal’s own checkout system. Any store that accepts contactless Mastercard payments will work.
The cards eligible for this are the PayPal Debit Mastercard, the PayPal Cashback Mastercard, the PayPal Credit Card, the PayPal Extras Mastercard, and the PayPal Business Debit Mastercard. To add one to your phone’s wallet, open the PayPal app, tap Accounts, select the card, tap Manage, then tap “Add to Apple Wallet” or “Add to Google Pay.” You can also add the card directly through your phone’s wallet app by entering the card number manually.
The PayPal Debit Card is the option that spends your actual PayPal balance. When you tap to pay with it, the purchase amount is deducted from your balance the same way a bank debit card draws from your checking account. The Cashback Mastercard, on the other hand, is a credit card, so charges go on your credit line and you pay them off later.
Use a Physical PayPal Card
Both the PayPal Debit Mastercard and the PayPal Cashback Mastercard are physical cards you can swipe, insert, or tap at any register that accepts Mastercard. This is the simplest option if you prefer not to use your phone at checkout. The debit card draws directly from your PayPal balance, while the credit card works like any other credit card with a billing cycle.
To get the debit card, you need a PayPal balance account. You can request one through the app or website under the wallet section. The Cashback Mastercard requires a separate credit application. Once approved and activated, both cards work everywhere Mastercard is accepted, which covers virtually every retail store in the country.
What It Costs
PayPal charges no fee for in-store purchases made in U.S. dollars. Whether you pay with a QR code, tap your phone, or swipe a physical card, the transaction is free on PayPal’s end. The only situation where a fee applies is if the purchase involves a currency conversion, which rarely comes up at domestic retailers.
Your linked funding source may have its own costs, though. If your PayPal balance is empty and the payment falls through to a credit card, you’ll accrue interest on that charge just like any other credit card purchase. If it falls through to a bank account, your bank’s overdraft rules apply as usual.
Which Method Works Best
Your choice depends on where you shop and what you’re trying to spend. If your goal is to use your PayPal balance specifically, the PayPal Debit Mastercard (physical or added to your phone’s wallet) is the most versatile option because it works at any Mastercard terminal. QR codes also spend your balance, but they only work at participating retailers.
If you don’t carry a PayPal balance and just want the convenience of paying through PayPal’s ecosystem, the Cashback Mastercard gives you a credit card that works anywhere and can be tapped from your phone. For the widest acceptance with the least setup, adding any PayPal card to Apple Pay, Google Pay, or Samsung Pay lets you pay at millions of contactless terminals without needing the store to have a specific PayPal integration.
Before heading to a store, check whether it accepts PayPal QR codes by looking for signage or asking at the register. For tap-to-pay, look for the contactless payment symbol (four curved lines) on the card reader. If you see it, your phone will work.