PayPal Introduces Internal Rewards System Based On Blockchain

By Rishma Banerjee

Paypal, is the American company operating a worldwide online payments system allows online money transfers and serves as an electronic alternative to traditional paper methods like cheques and money orders. They have recently launched a blockchain based in-house reward system for its employees along with an associated token. The token, however, cannot be redeemed for cash, is aimed at providing employees with perks and hands-on experience with distributed ledger tech, through internal trading.

Michael Todasco, the Director of Innovation of the company, confirmed to Cheddar, about the launch.

The blockchain was developed by PayPal’s San Jose innovation hub, in the course of half a year, in order to improve the team’s knowledge about the tech, which will serve as a ledger for tracking and trading tokens that can be used to claim internal company rewards. At the onset, each employee will be assigned a certain amount of tokens, which can be subsequently increased by pitching innovative ideas, partaking in company programs, and trading.

Though they currently have no exchange value beyond PayPal’s internal affairs, the tokens can be used to trade in for dozens of experienced-based perks like participating in recreational activities with the company’s top executives.

Todasco also said that,

“[It’s a] Venmo-like feed people can like and comment on and see all the activity going on within PayPal related to innovation.”

Though there are assurances about how PayPal will be integrating blockchain and cryptocurrencies, into their activities, if at all, this seems like a good step in the direction of acclimatizing their employees with the new tech. The fact that the payments powerhouse is experimenting with a fundamental blockchain use case, even though internally for now, has led many industry experts to speculate that the company may take positive strides towards embracing blockchain technology.

However, PayPal is not the first company to dabble into blockchain in this way. A few months ago, BBVA, the multinational Spanish banking group, had also launched a similar token system in order to incentivize proactive employee conduct. Carlos Kuchkovsky, the company’s CTO for New Digital Businesses has said at that time,

“We are global pioneers when it comes to using tokens for training in a corporate environment…For the first time, BBVA is exploring token-based economic models.”

E-commerce giant, Amazon recently launched two new blockchain platforms. Japan’s leading shipping company, Nippon Yusen KK also announced recently about the launch its own digital currency, a stablecoin pegged to the U.S. dollar, as an initiative aimed at cutting costs associated with transferring salaries to employees abroad.