The company believes that this will help drive transactions by exclusive agreements
Bottom line: Through buying Honey, PayPal hopes to gain valuable insight into digital places where people go to find goods and look for offers. This will help keep it competitive against the biggest payment networks in the world such as Mastercard and Visa.
Paypal has acquired Honey Science Corporation, the company that develops and maintains the popular Chrome extension, Honey, which provides you with coupon codes while shopping on one of over 30,000 online marketplaces.
Also, the tool has the ability to track an item’s price over time and let you know when it falls below a set threshold. Honey Gold rewards program is its most defining feature, offering you points to use the service, which can eventually be turned into gift cards.
The new deal is valued at $4 billion, and PayPal says it is intended to increase user engagement with Honey. Dan Schulman, CEO of PayPal, goes so far as to call it “one of the most transformative acquisitions” in the history of the business. As well as 350 staff, Honey co-founders George Ruan and Ryan Hudson will join PayPal to focus on product development and scaling up the deal network.
During an investor call, he said Honey’s e-commerce suite can help PayPal simplify the shopping experience by understanding what makes consumers more likely to buy from a merchant. PayPal also has the ability to take a closer look at shopper demand curves and accelerate sales through its platform providing exclusive offers.
With its Venmo payments app, PayPal has tried similar things before, but Honey is already much more common with users, for sales of $100 million and 100% growth in 2018. The new deal could extend its reach to more than 275 million PayPal and Venmo accounts, and is also well aligned with the latter’s plan to launch a credit card for younger consumers in 2020.