Payments giant PayPal has announced an agreement to acquire Honey Science Corporation, a fast-growing shopping and rewards platform, for approximately $4bn.
Honey will be integrated into PayPal’s network to transform the shopping experience for PayPal’s consumers while increasing sales and customer engagement for its merchants.
The scaleup was founded in 2012 and has become famous for its discovery tool that enables online shoppers to find savings. Today it has approximately 17 million monthly active users and has helped millions of people find more than $1bn in savings in the past 12 months.
“Honey’s vision has always been to give consumers the tools they need to make the best decisions with their money,” said George Ruan, co-founder of Honey. “PayPal shares that vision and together we can build powerful commerce capabilities that create real value for both consumers and retailers around the world.”
Ruan and his co-founder Ryan Hudson will continue to lead Honey’s daily work at its Los Angeles headquarters. They will report to PayPal senior vice president John Kunze.
“Honey is amongst the most transformative acquisitions in PayPal’s history,” said Dan Schulman, president and CEO of PayPal. “It provides a broad portfolio of services to simplify the consumer shopping experience, while at the same time making it more affordable and rewarding. 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.
“As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalized offers, and drive incremental sales. The combination of Honey and PayPal adds another significant and meaningful dimension to our two-sided platform.”
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