Email This Post Email This Post

PayPal to Acquire Shopping Tool Developer Honey for $4 Billion

PayPal
PayPal to Acquire Honey Shopping Tool Developer for $4 Billion

PayPal will acquire a developer of shopping tools for $4 billion. Honey Science Corporation describes itself as a tech company that builds tools to help people save time and money when shopping online.

In its announcement, PayPal wrote, “Honey, in combination with PayPal’s two-sided network, will transform the shopping experience for PayPal’s consumers while increasing sales and customer engagement for its merchants.”

Honey has 17 million monthly active users and claims it has helped millions of people save over $1 billion in the past year (that’s billion with a “b”). “From notifying you when a price drops, to showing you the lowest prices available, Honey provides you with the information that you need to make the best decisions with your money.”

The announcement comes 8 months before eBay will be allowed to take over all of the payment processing on its marketplace according to the terms of its separation agreement entered into with PayPal in July of 2015.

PayPal said on Wednesday, “Honey will enable PayPal to reach consumers at the beginning of their shopping journeys and will enhance PayPal’s ability to help merchants acquire and convert consumers by delivering offers that are personalized, timely, and optimized across channels.”

Sponsored Link

Among Honey’s “key merchant partners” are Etsy, Walmart, AliExpress, and Kohl’s.

In a slide deck from a presentation PayPal gave investors on Wednesday, PayPal said the acquisition would, among other things, shift PayPal beyond checkout and add “product discovery, price-tracking, offers, loyalty, and unified checkout tools.”

Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

3 thoughts on “PayPal to Acquire Shopping Tool Developer Honey for $4 Billion”

  1. Does anyone see the significance of this? PayPal is moving in the direction of providing not only the payment service to buy the products, but also the products themselves. This initial plan seems to resemble Google Shopping’s model. I wonder if they’ll venture beyond that in the future — like, say, into the realm of the marketplace?

Leave a Reply