Paypal Holdings Inc (NASDAQ:PYPL) is entering the online shopping space by acquiring Honey Science Corporation in a deal valued at $4 billion. With leading tech giants like Facebook, Google, and Apple entering the payments space, Paypal wants to make a game-changer by offering money-saving options at the beginning rather than at the end.
Personalizes shopping experience
Paypal and Honey app together offer a personalized and simplified shopping experience for the customers. They will help over 30,000 retailers to grab customers when checks out online. Honey is used by over 17,000 online shoppers worldwide. The customers can also use the Honey app as a browser extension to track the price changes at the websites of retailers.
Honey offers a host of services and products that comprise rewards program, offers, mobile shopping assistant, and price tracking alerts/ tools. It helped the customers to save over $1 billion last year. Honey is helping over 30,000 online retailers that range from technology and fashion to pizza delivery and travel.
The Honey app also enters the coupons automatically when a user checks out. It also offers loyalty points to customers when coupons are not available. Customers can redeem their loyalty points as gifts.
Twenty-four million online merchants
Paypal already commands twenty-four million online merchants. The takeover of Honey helps Paypal to offer a personalized shopping experience for the customers. Retailers will enjoy enhanced sales, whereas customers of Paypal get a better deal every time they make payment online.
Chief Executive Officer and President of Paypal, Dan Schulman, said the takeover of Honey is the largest deal in its history. It offers a host of services to reward the customers and make online shopping affordable with more savings. The customers will get engaged with complimentary rewards of Honey and easy to use the platform of Paypal. Merchants can strengthen and build customer relationships and improve sales.
Following the takeover, Paypal will retain the headquarters of Honey in Los Angeles, California. Ryan Hudson, and George Ruan, the cofounders of Honey, will become part of the Paypal and report to John Kunze, Senior Vice President. Ruan said the vision of Honey is to provide the best tools so that customers can make better money savings decisions.