“PayPal+” discount program starts: How much do customers actually save?
PayPal is launching a new bonus program for its customers in Germany. With PayPal+ you can collect points for online and offline purchases, which can later be converted into discounts or credit.
Starting signal for new bonus system
PayPal has been in crisis for some time and was even up for sale. However, those responsible rejected an offer of $53 billion from competitor Stripe in July. However, customers don’t notice much of this and recently even benefited from the introduction of a new installment payment option at Amazon. Payment service provider PayPal is now introducing a new loyalty program. The discount program called PayPal+ is available in Germany from today.
After free activation in the smartphone app, customers can collect points for eligible payments. For regular online purchases, the company grants one point for every five euros spent. This applies to payments by direct debit, credit card, installment payment or via internal credit.
Comparatively small discount
Bonus points can also be generated in brick-and-mortar stores if users use the physical PayPal card or the installment payment to go option. However, there is a monthly limit of a maximum of 1000 points. Private money transfers to friends and family are completely excluded from collecting. Normally, 1000 points collected correspond to the equivalent of exactly ten euros. The credit can be used as a direct discount when paying via PayPal. The regular refund of the equivalent of 0.2 percent of the purchase value is therefore very low compared to discount programs from other providers.
The points system is divided into the two free levels Blue and Gold. Anyone who collects a total of 4,000 points automatically achieves gold status. This increases the redemption value when checking out online by 20 percent. Gold members also receive up to 60 euros in cashback annually on subscriptions billed through the service. In order to achieve gold status without special promotions, customers would have to mathematically spend 20,000 euros.
Background to the global rollout
According to the company, Germany is strategically one of the most important markets for PayPal Golem announced. Currently, it is the only country other than the UK where PayPal+ exists. Similar to Payback, customers do not bind themselves to a single retailer, but are rewarded for the payment itself. However, each customer must decide for themselves whether trading data for a discount is worth it with the small refund of 0.2 percent of the purchase value.
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