PayPal in its biggest acquisition ever, agreed to purchase Honey, a Coupon Browser Extension. PayPal is planning to add Honey’s technology to its own product line. So, what’s so interesting in this coupon finder company that made PayPal shed so many bucks?
Recently, all of the tech giants; Google, Apple, Amazon, Facebook; have entered into the financial services making competition tough for PayPal. It was hence desperate to get an edge over these humongous firms. Honey’s acquisition gives PayPal that edge. Honey has over 17 million monthly active users. Instead of using user’s data as other coupon firms do Honey charges a small percentage from the sellers. Now, this worked at Honey but will seldom work with PayPal because of his bigger retail base. What’s interesting with Honey is it’s mobile app. You can add stuff into your cart from various different retailers. Now, that is what no other firm is doing. Experts are thinking that this is the feature that made PayPal go for this deal. It’d be interesting if PayPal incorporates Walmart’s Savings Catcher program. It gave customers rebates on products that sold for less at competitors. If Honey detects a new coupon after the user already made a purchase, it can transfer the difference in the amount to their PayPal or Venmo account.
PayPal in a press release said that it wants “to reach consumers at the beginning of their shopping journeys.” If PayPal really wants to keep its head up in the financial payment services it needs to help people choose items and not just pay for it and Honey is best suited for this purpose.