Paypal finished the process of buying Honey, an online commercial financial start-up company. The online payment conglomerate could see how essential and valuable the company was in its merge of shopping and rewards with its two-sided payments network.
Why did PayPal Buy Honey?
PayPal Holdings recently confirmed their purchase of the deal-finding add-on company, known as Honey Science Corporation; the buy-out was worth four billion dollars and it is considered the largest purchase in the online payments firm’s twenty years. Honey Science Corporations has approximately seventeen million active users per month, where it provides finding deals as an extension to help clients to get the best prices. Their sponsors are more than thirty thousand online retailers.
The online coupon application also gives customers a hand in finding the best deals on purchases on Amazon, provides cash-back, keeps tracks of any prices declining, and more. Paypal claims the value in merging both shopping and rewards with payments as the take-over provides its double sided network; this includes both PayPal and Venmo to create new offers and technology.
They also plan on rejuvenating the shopping experience for the 275 million live users on PayPal, while simultaneously growing sales and customer interactions for its retailers.
What is in Store After the Large Buy-Out of Honey?
PayPal managed to acquire Honey, while the online coupon application is growing in popularity among online users, since it automatically adds coupon codes at the checkout of every purpose. Honey, which only started in 2012, reported over one hundred million dollars in revenue in the year of 2018. It is expected to grow to reach two-hundred million dollars at the end of 2019.
The purchase of Honey Science Corporation has managed to improve the online presence of PayPal in the e-commerce space, when competition has been on the rise. The online payment company is attempting to stabilize its presence, in order to ensure the loyalty of its users.
“The addition of Honey to our platform enables a significant step forward in our commitment to provide powerful services and tools for merchants and consumers, move beyond our core checkout proposition and significantly enhance the shopping experience for our 300 million consumers and merchants,” according to Dan Schulman, the president and Chief Executive Officer of PayPal.
PayPal has been recently competing with its opponent Square, for more highlights in the payment industry. Square Inc. is an online payment firm that was established by the Twitter Chief Executive Officer, Jack Dorsey. The company has been offered the licenses to deal in cryptocurrencies, which makes it extremely dangerous for PayPal to compete.