For six months, a team of 25 at the PayPal Innovation lab has been working on a payment system for internal use that utilizes blockchain technology. The Venmo-esque app has now been live for a month, with positive feedback from the employees. In general it is a “Venmo-like feed people can like and comment on and see all the activity going on within PayPal related to innovation” - Director of innovation Michael Todasco.
Innovative Rewards System
As with other major payment processors such as Circle, or Mastercard or Visa, cryptocurrencies and the possibilities of blockchain technology have been on the radar for years, with hundreds of patent applications coming form these companies to improve their payment systems. One of the common threads is the use of blockchain technology for a customer rewards system. Paypals internal app adds a reward system like this to the base Venmo-like structure.
The rewards system is more complex than simply gaining tokens for making transactions. It facilitates a system similar to those designed for workplace applications. Employees receive bonus tokens for joining innovation development programs, proposing ideas or processing additional work studies. However, the tokens cannot be withdrawn to cash like the standard Paypal payment app.
Within their system, the tokens are valid for over 100 different rewards or experiences with Paypal Executives, such as poker tournaments, martial arts classes or dog walks. The tokens can be traded between employees as well, but this includes the traditional structure of a public blockchain ledger, where anyone on the network can look at the entire transaction ledger.
Coinbase Brings Back Cash Withdrawals
While blockchain technology is creeping into the internal activity of Paypal’s business and cultural structure, their payment app is again blending with one of the world’s largest cryptocurrency exchanges. As of last week, Coinbase began processing cash withdrawals to customers’ Paypal accounts - a process that first began in 2016, but was discontinued for undisclosed technical difficulties. At the time, Coinbase only supported BTC as well.
By: BGN Editorial Staff