US-based payment processing and overseas transaction facilitator PayPal has so far stayed away from accepting cryptocurrencies and, at least visibly, not interested in considering blockchain on its platform. But the changing trends have led the company launching an internal blockchain-based employee incentive program.
With a strong team of 25 members, PayPal’s Innovation Lab in San Jose, California, took six months to build and finally went live this November, according to a report by Cheddar. PayPal’s Innovation Lab’s director of innovation Michael Todasco has confirmed the reports.
He said, “Venmo-like feed people can like and comment on and see all the activity going on within PayPal related to innovation.”
The new blockchain-based platform will reward employees in crypto-tokens. However, the tokens will only have a value inside of PayPal. The employees can earn tokens by contributing innovative ideas as well as they can trade the tokens internally. The transactions will be recorded on the platform’s blockchain ledger.
PayPal’s employees can redeem the tokens for over 100 different rewards and experiences. The rewards range from a morning of martial arts with PayPal CEO Dan Schulman, poker tournaments with PayPal’s vice presidents to borrowing the dog of the Head of Investor Relations at PayPal.
PayPal’s innovation lab is focused on working with prototypes. The lab has studied voice technology in the past and now working on voice projects. The internal employee reward platform could be a way to try the blockchain-based system. Media reports speculate that PayPal may extend the platform externally for customers in future.
However, the reports are not yet confirmed by PayPal. Earlier in May this year, PayPal CFO John Raney has said that Bitcoin was too volatile and can affect the credibility of PayPal. However, Rainey added that if the merchant demand increased for cryptocurrencies, PayPal could revise its current policy on Bitcoin.
There is still more developments going on internally at PayPal related to blockchain and cryptocurrencies. Earlier PayPal filed a patent this year for a system to enhance the speed of cryptocurrency transactions. It could be a time for PayPal to deliver something innovative to the market.
PayPal app was just overtaken by Square’s Cash App on the Google Play Store. PayPal remained on top of the list on the Google Play Store for quite some years. However, The Square app offers Bitcoin trading services and holds the number one position in the finance application category in the United States region of the Play Store.