PayPal Rolls out Rewards Program as Holidays Approach

PayPal has launched a rewards program that lets customers earn, track and save rewards all from the PayPal app.

“As consumers continue to navigate high prices heading into the holiday shopping season, deals, discounts and cash back remain top priorities, with 25% of consumers stating loyalty programs are the most important factor when deciding where to shop,” PayPal said in a Monday (Oct. 17) news release emailed to PYMNTS.

The company described PayPal Rewards in the release as a “ubiquitous rewards program,” letting costumes earn rewards points and save money by getting cash back at participating retailers. The program will build upon the almost $200 million consumers have saved so far this year through its discounting tool Honey.

The program lets customers combine rewards earned across multiple PayPal products and shopping experiences, such as PayPal Honey browser extensions and the PayPal app, and eventually, various card products, according to the release.

In August, Chris Hammer, vice president and general manager of global shopping at PayPal, told PYMNTS’ Karen Webster that the new Honey browser extension allows users to find more merchants and savings inside the payments ecosystem.

Read more: PayPal Honey Sweetens the Pot for Shoppers and Merchants as Holidays Approach

For shoppers, Hammer said the new mobile browser extension “means bringing a lot of the incentives and rewards content” Honey is known for to more consumers.

At the same time, for merchants, it creates “a great opportunity for incremental leads and customer acquisition for our key brands where they get the opportunity to find the most engaged PayPal users and really have a chance to create a relationship with them.”

PayPal Rewards is launching at a moment when more people are living paycheck to paycheck and scrambling to keep up with their bills in the face of climbing inflation.

See more: Core Inflation Hits 40-Year High as Consumers Weigh Spending Priorities