Online payments company PayPal has announced this Wednesday, that it would acquire Honey Science, a privately held shopping and reward platform for around $4 billion (£3.10 billion).
PayPal has stated that this acquisition will enhance engagement with its users. Honey Science was popular as a platform which found out and applied coupons on popular websites, helping the consumers to save some extra bucks. PayPal will use its tools to provide new offers to the customers on its platform.
PayPal CEO, Dan Schulman has stated that the acquisition of Honey will be one of the the most transformative one in the company’s history. He further said;
“We believe the acquisition of Honey will be a springboard for our broader commerce ambitions. These services dramatically simplify (the shopping experience). We completed a comprehensive screen for other players and Honey had the best e-commerce suite. The combined company can optimize the commerce experience across channels and devices.”
PayPal and its mobile payment service Venmo collectively host over 275 million active consumer accounts. At the same time Honey had 17 million active monthly users in October this year. The deal is expected to close 2020 fist quarters as stated by PayPal.
PayPal has further mentioned that once the deal closes, Honey will still be able to retain its brand as well as headquarters in Los Angeles, California.
Some popular merchants that were involved with Honey’s network are Etsy, Booking.com, Hulu, Dell, Walmart and Kohl’s.
Schulman said;”We love the business on a standalone basis. But the real importance is what Honey does for the PayPal ecosystem.”
PayPal will use Honey’s technology to provide deals along with a personalized shopping experience to its users. Use will be able to avail exclusive offers for transactions over PayPal as well as Venmo.