Purchasing power parity (PPP) is an economic practice that compares the purchasing power of various world currencies to one another to determine an exchange rate that allows you to buy approximately the same amount of goods and services in every country. It represents the rates of currency conversion that try to equalise the purchasing power of different currencies, by eliminating the differences in price levels between countries.

The PPP coefficient (or rewards cost multiplier) rate on PraisePal factors in data directly from the World Bank and Open Exchange Rates API to adjust points for gift card redemptions on PraisePal to be as close as possible to the same value for redemption no matter the user’s location.

PraisePal uses basket price and exchange rates to calculate coefficient data for each country automatically. The basket price is pulled from The World Bank's PPP conversion factor, and includes the cost of living. Country exchange rates are updated in real-time every day and are sourced from OpenExchangeRates.org

Updates to PPP and changes to exchange rates can impact the amount of PraisePal points needed to redeem Gift Card Rewards in that country. Here's how changes in PPP impact redemption:

If you've noticed a change in the number of points needed to redeem for rewards, that's because the PPP coefficient for your country has been updated to ensure that the buying power of points, or the time needed to save up for rewards of equal value, is roughly equivalent for all users at your company (regardless of geographic location).

Our goal is to make redeeming Rewards in PraisePal as fair as possible for all users. This is why we default to using data from the World Bank and perform regular audits to ensure we're staying up to date.

Questions? Send us a note to support@praisepal.com; we'd be happy to help!