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PayPal Acquires Price Comparison Tool Honey For $4 Billion

PayPal has announced its acquisition of Honey Science Corporation, a price comparison platform that helps shoppers save money.

Honey was founded in 2012 and provides promo codes, discounts and online coupons to customers. Customers can even add items to their list and be notified if the price drops. The company’s addition will help PayPal further simplify the online shopping experience and be a valuable tool for PayPal’s network of merchants.

“The acquisition supports PayPal and Honey’s shared mission to simplify and personalize shopping experiences for consumers while driving conversion and increasing consumer engagement and sales for merchants. The combination will help accelerate growth across both companies. Honey will accelerate its growth by driving adoption among PayPal and Venmo’s more than 275 million active consumer accounts and sourcing exclusive offers from PayPal’s extensive network of 24 million merchant accounts. Honey will enable PayPal to reach consumers at the beginning of their shopping journeys and will enhance PayPal’s ability to help merchants acquire and convert consumers by delivering offers that are personalized, timely, and optimized across channels.”

Amid increasing competition from Apple Pay, Google Pay and other digital wallet systems, PayPal also hopes the acquisition will help it drive user engagement.

“Honey is amongst the most transformative acquisitions in PayPal’s history. It provides a broad portfolio of services to simplify the consumer shopping experience, while at the same time making it more affordable and rewarding,” said Dan Schulman, president and CEO of PayPal. “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.”