A partnership for mutual benefits
It was just announced that PayPal has acquired Honey Science Corporation for $4 billion dollars. If you listen to podcasts or watch videos on YouTube it’s likely you’ve heard ads for Honey. Honey is a browser extension that helps users to find auto-fill discounts deals when shopping online.
PayPal is used worldwide and is well known for its use as an online payment method. This is a big step for both digital companies. Both services are a big part of the customers’ journey so PayPal’s acquisition of the sweet deal-finding company makes total sense. The deal has the potential to make PayPal more relevant in a quickly changing industry.
Daniel Perlin pointed out that 90% of Honey users use the extension every month, and with PayPal at the could increase the use of the platform to even higher heights.
Honey, a company that was founded in 2012, now works over 30,000 retailers online as well as a commanding 17 million monthly users.
“The combination of Honey’s complimentary consumer products with our platform will significantly enhance our ability to drive engagement and play a more meaningful role in the daily lives of our consumers,” Dan Schulman, president, and CEO of PayPal.
Schulman went on to explain that with Honey on their team they’ll be able to create specialized offers, increase sales, and foster closers customer relations.
Founders of Honey Ryan Hudson and George Ruan will continue to manage Honey on behalf of the consumer product and technology organization while also reporting to PayPal’s Senior Vice President John Kunze.
With Honey’s pricing notifications and the option to pay with PayPal, the partnership is one that is profitable for both industries. Though there could be other reasons for the acquisition. Fortune postulated that PayPal may want to tap Honey for their “data on Shoppers.”