Pepsi is now incentivizing people with actual money to buy more junk food. That’s right, with its PepCoin loyalty program, Pepsi will send you real cash through PayPal or Venmo for buying PepsiCo drinks and Frito-Lay snacks. Customers just have to both a snack and drink and scan the special code on the products with their smartphone cameras. Each scan equates out to roughly 37 cents and once people reach a balance of $2, Pepsi will send their reward to their PayPal or Venmo accounts. PepCoin has more than 1,000 possible pairings of soft drinks and snacks among the company’s brands, including Pepsi, Mtn Dew, Aquafina, Lay’s, Doritos, Cheetos, Ruffles, and Fritos.
“We’re thrilled to help bring PepsiCo closer to their consumers for the PepCoin loyalty program. Venmo and PayPal’s payout solutions provide the ability for physical brands to engage with their customers digitally while offering a convenient way for consumers to redeem and spend their cash rewards.”Leanne Sheraton, VP of Marketing at PayPal
PepCoin is an innovative strategy to foster customer loyalty and engagement through mobile. By partnering with PayPal and its subsidiary Venmo, Pepsi is targeting a younger demographic who are active users of utilize mobile payments. Nearly 75% of Venmo’s users are under the age of 35 and these users are active in transferring money. $19 billion in payments flowed through Venmo in Q4 2018, an 80% increase from the previous year. Millennials and Gen Z’ers also value rewards and are more inclined to join loyalty programs to help stretch their dollars. 61% of consumers said a mobile loyalty program made them buy more frequently, per a survey by 3Cinteractive. Additionally, PepCoin is a means to gather consumer data on what drinks and snacks people are actually buying with the ability to serve targeted ads and promotions, which in turn can drive repeat purchases. It’s highly more effective than the typical digital ads or traditional meals of advertising.
For PayPal, this partnership can help grow its user base in a mobile payment space where competition is increasing. Apple Pay’s adoption grew 36% over the last year and Square’s Cash App doubled its user base in 2018. PepCoin can help PayPal acquire new users and retain existing users.