Paypal integrates Honey's rewards program into Paypal Rewards

Three years after its acquisition, Paypal has announced the integration of this discount and rewards programme into its application under the name Paypal Rewards. This new feature is intended to allow the wallet to stand out from the competition in the face of increasingly inventive players in the field of payments.

FACTS

• The new programme will replace Honey Gold, the rewards programme for users of the Honey browser extension.

• This loyalty programme allows customers to redeem their points for cash, gift cards or PayPal purchase credits.

• With the new PayPal Rewards, consumers will be able to track and redeem their points directly in the PayPal application. PayPal is also announcing new ways to earn benefits.

• Once redeemed for cash, funds can be transferred to a linked bank account, deposited into a PayPal savings account, donated to charity or sent to someone else as a peer-to-peer (P2P) payment.

CHALLENGES

• Moving up the value chain: With the advent of increasingly integrated payment experiences, the battle for online payment is moving up the value chain and away from the payment page itself. Players such as Instagram, Pinterest and TikTok aim to capture users within their ecosystem. By offering promotional codes and coupons, Paypal wants to move up a notch in the shopping journey and direct consumers to the sites of their favourite merchants.

• Fulfilling a current need: With the financial challenges people are facing these days, caused by rising prices, consumers are more attentive and demanding this type of discount program. According to IDC, Consumer Sentiment Survey, 2022: 25% of US consumers say that loyalty programmes are the most important factor when deciding to make a purchase.

MARKET PERSPECTIVE

• The new service that Apple introduced last week is linked to the Daily Cash feature of the Apple Card. It takes the form of impulse savings, allowing the cashback to be placed automatically into this dedicated account.

• Klarna has also announced a redesign of its Spotlight search engine, which is based on discount coupon proposals integrated directly into the shopping experience.

• Finally, traditional banks are also revisiting their traditional loyalty programmes, such as "Mes extras", the new cash-back programme of BNP Paribas.