PayPal Stock Price Pops as it Unveils New Rewards Program
PayPal stock price rose on Monday after the company introduced a new rewards program. The fintech leader introduced PayPal Rewards, a new product it hopes will help boost its growth. The stock rose by more than 4% and reached a high of $83.8.
PayPal Rewards program
PayPal acquired Honey, a coupon company, in 2019 in a $4 billion deal. The product allowed the company to become a leading player in the e-commerce industry. In addition, it was a way for PayPal to increase its competitive advantage against companies like Google Pay and Cash App.
It also have PayPal access to a product known as Honey Gold, which is the rewards program that makes it possible or users to redeem their points and gift cards for cash,
PayPal Rewards will replace Honey Gold by making it possible for users to track and redeem points directly inside the PayPal application. Also, users will have more ways to earn money in its platform. According to its company, PayPal’s Honey product has saved users more than $200 million users.
By offering this product, PayPal is combining the rewards products that the company offers in its application across its multiple products. PayPal owns other popular brands like Venmo and Xoom.
In addition, users can redeem their points without any category restrictions or account minimums. These points will be converted to cash at a rate of 100 points equalling $1. After redeeming, the user can save them in PayPal, send to other people, or even shop online.
Shopping season eyed
The new product launch comes ahead of PayPal’s busiest period. In most cases, the company makes substantial revenues during the holiday season since it is used to facilitate these transactions. Analysts at Adobe expect that customers will spend over $209 billion in the shopping season. This season starts on November 1 and runs through December 31st. PayPal’s Greg Lisiewski said:
“PayPal Rewards makes it easy to find sales, discounts, and great deals when making a purchase with PayPal – through cashback, discount codes, or other rewards.”
Learn more about how to send money using PayPal here.