PayPal is launching a brand new rewards program to assist folks discover offers on the web and get monetary savings with the corporate’s Honey acquisition at its core.

Honey is a browser extension that scours the web on the lookout for offers, promo codes, or coupons for on-line retailers (and a preferred YouTube channel sponsor). PayPal purchased the developer behind Honey (opens in new tab) again in early 2020, however didn’t actually do a lot with it till in the present day. Now with the aptly named PayPal Rewards (opens in new tab), features of Honey will function the inspiration for the brand new program. The corporate states its motivation behind the PayPal Rewards is to assist folks “navigate excessive costs [as we head] into the vacation buying season.”  

Reductions and rewards

PayPal Rewards has been given its personal in-app hub on cellular gadgets and desktop the place you’ll be able to monitor the factors you gather. These factors will be earned by both participating with the official app or utilizing the Honey browser extension to seek out reductions.

In flip, factors will be redeemed for “money again and different rewards”.  Nevertheless, it seems these different rewards are merely extra factors added to your account. It does not seem like PayPal might be using Honey Gold (opens in new tab), which presents further financial savings on purchases. Talking of which, prospects who’re part of Honey Gold can hyperlink their account to PayPal and use these factors on the brand new program.

An organization consultant advised us that 100 factors equals $1 USD. That cash will seem in your PayPal stability the place it may be transferred over to a checking account, despatched to another person by way of peer-to-peer cost, or donated to charity. 

The brand new program is presently rolling out to customers in the USA so we extremely advocate updating your PayPal app for those who’re . When requested about increasing PayPal Rewards globally, the identical consultant advised us there are not any plans to develop in the intervening time. There are plans to incorporate PayPal Card merchandise just like the debit card into the Rewards program, however no date for that was given.

Way forward for on-line cost

The launch of PayPal Rewards comes at a very attention-grabbing time, and never due to the vacation season. It seems the corporate is seeing the writing on the wall in relation to the way forward for on-line cost tech: offering your prospects with offers and reductions. Apple noticed this coming, too: when it revitalized its Pay app, it included a Pay Later characteristic giving folks a brand new choice for buying. As an alternative of paying for one thing in full, you need to use Pay Later to create a cost plan that’s extra price range pleasant. 

Google additionally not too long ago introduced again its outdated Pockets app (opens in new tab), however didn’t add any low cost finder instrument. As an alternative it focuses extra on offering comfort and safety. Maybe PayPal Rewards will give the lengthy operating platform the sting it wants over its rivals.

If you happen to’re on the lookout for an alternative choice to PayPal, we advocate testing TechRadar’s cash switch apps record for 2022, which was not too long ago up to date.