Four billion dollars is a lot of money but, apparently, it is not enough to stop PayPal Holdings Inc from acquiring the online discount shopping platform Honey. And analysts seem to agree, as they note PayPal should be able to extract direct value from the Honey Science Corporation’s web application by immediately boosting its relevance with consumers. It will also improve customer engagement, and expand Honey’s international distribution options.
Honey, of course, is known for its browser extension product that helps web users find deals on products for which they are already shopping. It was started in Los Angeles in 2012 by Ryan Hudson and George Ruan with an aim to help people discover more rewards and deals while shopping online.
PayPal SVP of Global Consumer Products and Technology—and former Xoom CEO—John Kunze explains, “What’s exciting is that we can take the functionality Honey now offers—which is product discovery, price tracking, offers, and loyalty—and build that into the PayPal and Venmo experiences.”
And, alternately, Honey will be able to adopt all 275 active PayPal and Venmo consumer accounts. Honey will also have access to 24 million PayPal merchant accounts.
It is also interesting that Honey has such a substantial price tag as many people still don’t know what this product it. Of course, as more and more people shift to e-commerce shopping, Honey’s visibility quickly grows. That in mind, the Honey platform now works across 30,000 merchant websites ranging from fashion to travel to technology and, of course, pizza delivery. As a matter of fact, Honey publicly shared that its 10-million-strong userbase have saved a collective $800 million through their platform, last year alone. Today, Honey has 17 million members who have saved a collective $2 billion to date.
That in mind, PayPal president and CEO Dan Schulman comments, “Honey is amongs the most transformative acquisitions in PayPal’s history. The combination of Honey’s complementary 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.”