PayPal Acquire Money-Saving Platform Honey For $4 Billion
22 Nov 2019
Approx Reading time: 3 minutes
- PayPal has agreed to acquire deal-finding platform Honey for $4 billion
- PayPal to integrate the money-saving service to its product line and Venmo making it available for its 24 million merchant partners
- Honey helps online shopping customers find the best promo codes that can save some money
Money transfer service company PayPal has always been seeking new ways to part customers from their money. It has consistently found this through the acquisition of companies such as Braintree iZettle and Xoom. Its latest addition will see PayPal get back to the online shopping space.
Paypal acquires money-saving service Honey
The company has agreed on a $4 billion deal to acquire money-saving service Honey Science Corporation. It will be the company's largest acquisition to date, which will give PayPal a foothold in the online shopping experience. It is a fantastic opportunity that will see PayPal take the lead in the deal discovery process. It will compete in more fronts than on just the checkout page.
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The deal will help the companies in simplifying and personalizing online shopping for consumers. They will also support over 30,000 online retailers in getting clients through the online checkouts. Honey enjoys around 17 million monthly active users who leverage its assortment of money-saving tools. They use them to get alerts, track prices, browser offers, make lists as well as take part in the reward program called Honey Gold.
Integrating Honey’s money-saving tech into PayPal and Venmo
The acquisition of Honey will help it in targeting and personalizing shopping experiences for consumers once they are on the site. PayPal will make Honey's tech part of its product line. As a result, this will help Honey expand its reach to over 300 million users of PayPal.
It is not clear how PayPal wants to integrate Honey’s money-saving service to its products. John Kunze PayPal’s SVP confirmed that they want to incorporate the functionality of the deal-finding tech into Venmo and PayPal experiences.
After integration, PayPal‘s 24 million merchant partnerswill also use the money-saving tech. The merchants will be able to offer more targeted and personalized promotions to consumers. As a result, this new way of acquiring business will lead to increased sales. Similarly, there is a possibility of integrating PayPal Credit in Honey to help in financing big purchases.
Honey chooses the best promo code for the customer
Kunze confirmed that PayPal wants to put money in the pockets of customers, just like what Honey does. PayPal wants to transform the financial services and digital marketplace by making them affordable and accessible across the globe.
Honey can track sales and promotion codes of retailers, just like RetailMeNot and other rivals. It is beneficial to consumers in that it finds all eligible promo codes for a customer during checkouts. To help you save money, it picks one that will help the consumer to save more money. As a result, this enables consumers to be comfortable in their online purchases thus reducing chances of shopping cart abandonment.