PayPal debuts a new rewards program that combines Honey’s discounts with other ways to earn • TechCrunch
PayPal takes a step away from the Honey brand, and Acquisition of $4 billion in shopping rewards It was created in 2019, with PayPal Rewards launching today. The new program will replace “Honey Gold” – a reward program for users of the Honey browser extension, which allows customers to redeem their points for cash, gift cards or PayPal shopping credits. With the new PayPal Rewards, consumers will be able to track and redeem their points directly within the PayPal app, and they will have new ways to earn them, the company says.
The goal of the Honey deal was to give PayPal a better position in the face of increased competition in the payments space from major competitors, including Apple, Google, and even Facebook (now Meta). The battle for consumer adoption of online and mobile payments has shifted away from the checkout page itself, to compete against all the other places people go to discover, browse, get inspired and search for deals – including on retailer sites and on social platforms, like Instagram, Pinterest and today TikTok.
A rewards program, like the one offered by Honey, engages users by offering promotional codes and coupons to favorite retailers, while redirecting them away from Amazon at better prices. Features such as a price-tracking ‘dropdown menu’ also help consumers find the best deals for the items they are considering. and with Last year’s renewal of the PayPal appPersonal deals and rewards are becoming a bigger part of the mobile experience, too.
This year, PayPal customers saved nearly $200 million through the Honey cashback and rebates program, PayPal says.
With the launch of PayPal Rewards, the company is now combining the rewards offered to PayPal customers across several PayPal products, including the Honey browser extension, the PayPal app, and various card products in the future. Rewards will also be given a dedicated place in a new part of the PayPal app, where shoppers can track their points and redeem them when they earn. When customers want to redeem their points, there will be no class restrictions or account minimums, the company notes, and points can be converted into cashback at a rate of 100 points equivalent to $1.
Once the cash is refunded, the money can be transferred to a linked bank account, deposited into a PayPal savings account, donated to a charity, or sent to someone else as a peer-to-peer (p2p) payment.
With the new in-app hub, customers will also be able to earn points through personal participation in the PayPal app, as well as the browser extension, and they’ll be able to stack rewards earned from their payment card programs.
This custom link offers a new way for a customer to earn PayPal Reward Points by doing things like linking a debit card or bank account to PayPal, for example. If the customer has already done so, he may be offered a different procedure to take.
The company is touting the move ahead of the 2022 holiday and traditionally, the largest quarter of online shopping.
However, this year’s e-commerce landscape looks a bit different, with more spending expected to kick in earlier thanks to Amazon’s decision to host its second Prime Day event in October, prompting other retailers to follow suit. However, Adobe expects consumer spending to continue to increase this year by 2.5% during the period from November 1 to December. 31 time frame, Reaching $209.7 billion.
“With the financial challenges people face these days, caused by rising prices and the need to tighten budgets, it can be frustrating to shop for daily necessities or plan vacations,” said Greg Lisewski, Vice President of Shopping and Global Pay Later. , in a statement about the launch. “PayPal Rewards makes it easy to find great sales, discounts, and deals when you make a purchase with PayPal — with cashback, discount codes, or other rewards,” he said.