Financial news outlet Cheddar has revealed that PayPal, the global payments system, has introduced a blockchain-based rewards system for its employees. Paypal’s innovation team worked on the concept for six months before launching it in mid-November.
Employees participating in the programme are given tokens for contributing innovative ideas, and these tokens are only usable within PayPal and can be traded among the employees using a “public ledger.”
Michael Todasco, PayPal’s director of innovation, compared the reward system to Venmo — a mobile payment service that has public and private social media-like feeds. He also explained that programme participants have access to a dedicated website where they “can like and comment on and see all the activity going on within PayPal related to innovation.”
The tokens collected by staff can be exchanged for over 100 “experiences” offered on the platform. For instance, they can play poker with PayPal’s vice presidents, have coffee and a trail run with CFO John Rainey, or practice morning martial arts with CEO Dan Schulman. And for the dog loving employees, one experience allows them to borrow a top manager’s dog for the day.
Loyalty programmes and the blockchain go well together and this isn’t the first time we have seen it work. US
household cleaning supplies manufacturer SC Johnson and environmental organisation Plastic Bank recently launched a recycling campaign in Indonesia, granting tokens to local citizens for waste collection. AND BBVA bank is using internal tokens in its Spanish and Argentinian branches to reward employees who help with training other employees or learn a new skill.
So far, PayPal has not adopted blockchain for its payments, but it has filed a US patent with regard to speeding up crypto transactions using private secondary keys, although one bitcoin developer suggested the firm was trying to get a patent for technology that bitcoin had already developed.