PayPal on Wednesday revealed plans to buy shopping and rewards platform Honey for roughly $4 billion.
Honey helps shoppers find savings on the web and on mobile, and its platform spans a mobile shopping assistant, an offers and rewards program and price-tracking tools and alerts. The online wallet and payments company wants to combine those capabilities with its PayPal and Venmo products.
Dan Schulman, PayPal’s president and chief executive officer, said, “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.”
The goal, according to PayPal, is to help consumers make informed choices earlier on and give merchants a way to bolster customer relationships, drive more sales and personalize offers.
The potential is not small. Honey serves some 17 million monthly active users, and it boasts that it has helped millions save more than $1 billion in the past year. Currently, the seven-year-old company works with about 30,000 online retailers, ranging from fashion and tech to food.
“Combining PayPal’s assets and reach with our technology, we can build powerful new online shopping experiences for consumers and merchants,” said Honey co-founder Ryan Hudson. “We’ll have