PayPal launches PayPal Rewards

With the launch of PayPal Rewards recently, PayPal is moving away from the Honey brand, the $4 billion shopping rewards acquisition it made in 2019. The new program will replace the previous one, "Honey Gold," which allowed users of the Honey browser extension to exchange their points for money, gift cards, or PayPal shopping credits. Additionally, the company claims that customers will be able to track and spend their points just inside the PayPal app with the new PayPal Rewards, and there will be additional ways to earn. Furthermore, PayPal purchased Honey with the intention of giving the company a stronger competitive edge against bigger rivals in the payments industry, such as Apple, Google, and even Facebook (now Meta). Plus, in order to compete with all the other places people go to discover, browse, get inspired, and deal-hunt, including on retailers' websites and on social media networks like Instagram, Pinterest, and, as of today, TikTok, the fight for consumer adoption of online and mobile payments shifted from the checkout page itself. Moreover, by providing customers with discount vouchers and coupons for their preferred retailers while diverting them away from Amazon with lower pricing, a rewards program, like the one provided by Honey, aims to entice users. According to PayPal, its users saved close to $200 million this year as a result of the Honey cash back and discounts program. More details The company consolidated the benefits provided to PayPal users across a number of PayPal products, including the Honey browser extension, the PayPal app, and, in the future, other card products, with the introduction of PayPal Rewards. Additionally, Rewards will have a dedicated area in a new section of the PayPal app where users can track and use their points as they accrue them. According to the company, there won't be any category limitations or account minimums when clients wish to redeem their points, and they can convert the points to cashback at a rate of 100 points to $1 USD. Then, they can use the money for peer-to-peer (p2p) payments, donations to charities, deposits into connected bank accounts, and PayPal Savings accounts. In addition to the browser extension and the new in-app hub, consumers will be able to earn points through customized engagement in the PayPal app. They can then stack these points with incentives from their payment card programs. Furthermore, by doing things like, for example, connecting a debit card or bank account to PayPal, this personalized interaction gives a new way for a client to earn PayPal Reward points. If the client did so already, they can opt for another action.

What's more

Most importantly, the corporation is touting the change prior to the holidays in 2022, which are typically the busiest quarter for internet shopping. But this year, things are a little different with more spending anticipated to start sooner, in part because Amazon chose to hold a second Prime Day event in October, inspiring other businesses to do the same. Nevertheless, Adobe forecasts that consumer spending will rise by 2.5% this year between November 1 and December 31, totaling $209.7 billion. Greg Lisiewski, Vice President of Shopping and Global Pay Later, said in a statement regarding the introduction, "With the financial challenges people face these days, brought on by rising prices and the need to tighten budgets, it can be frustrating to shop for everyday essentials or plan for the holidays. PayPal Rewards makes it easy to find sales, discounts, and great deals when making a purchase with PayPal – through cashback, discount codes, or other rewards.”