The $4 billion acquisition of the Honey brand is being taken away with the launch of the new PayPal rewards program. The rewards program for Honey browser extension users called "Honey Gold" allows customers to redeem their points for cash, gift cards or shopping credits. Consumers will be able to redeem their points directly inside the PayPal app, as well as have new ways to earn, with the newPayPal rewards.
The deal for Honey was intended to give PayPal a better position in the face of increased competition from larger rivals. The battle for consumer adoption of online and mobile payments had shifted away from the checkout page itself, to compete against all the other places people go to discover, browse, get inspired and deal hunt.
A rewards program like the one offered by honey works to entice users by offering promo codes and coupons for favorite retailers, while redirecting them away from Amazon with better prices. Consumers can find the best deals on items they are considering by using features like the price tracking DropCatch. Personalization became a bigger part of the mobile experience as a result of the redesign of the PayPal app.
The Honey cash back and discounts program has saved hundreds of millions of dollars this year.
In the future, the company will combine the rewards being offered to PayPal customers across multiple products, including the Honey browser extension. There will be a dedicated spot for rewards in the new part of the PayPal app. The company notes that when customers want to redeem their points, there won't be category restrictions or account minimums, and the points can be converted to cash at a rate of 100 points.
Once redeemed as cash, the funds can be transferred to a linked bank account, deposited into a PayPal savings account, or sent to someone else as a peer-to-peer payment.
With the new in-app hub, customers will be able to earn points through personalized engagement in thePayPal app, in addition to the browser extension, and will be able to be stacked with the rewards earned from their payment card programs.
The personalized engagement introduces a new way for a customer to earn reward points by linking their bank account to their PayPal account. The customer may be presented with a different action to take if they already did it.
The image is fromPayPal.
The biggest quarter for online shopping is in the second half of the year.
Thanks to Amazon hosting a second Prime Day event in October, more spending is expected to start earlier, leading other retailers to follow suit. According to Adobe, consumer spending will increase 2.5% in November and December. The time frame was 31 years.
"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." He said that it's easy to find sales, discounts, and great deals when you make a purchase withPayPal.
The image is fromPayPal.
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