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.”
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.”