Paypal Honey acquisition aims to increase the retail exposure of Paypal. In a deal valued at four billion dollars ($4B), the purchase of the deal finder firm Honey will help Paypal increase its foothold against rivals like Square.
The latest acquisition comes at a time when the firm is facing stiff competition from other fintech firms. Paypal will now look at securing more share of the digital retail market by adding feature-rich payment processing along with online deals. Both Venmo and Paypal will benefit from this acquisition. The expansion plans will integrate online payment with retail systems.
Paypal Honey acquisition to revolutionize the online retail industry
Times are tough for the online retail industry as growing margin cuts into the profit margin of every firm. Paypal Honey acquisition has been one of the most expensive deals the company has undertaken recently. Honey boasts of more than seventeen million (17M) daily active users that search for deals and retail coupons. Besides the latest Amazon deals, the site provides a market for more than thirty thousand (30k) digital retailers as well.
The Paypal Honey acquisition will be a game-changer for the platform’s two hundred seventy-five million (275M) customers. Their shopping experience will be transformed as they will now be able to tap into the latest deals and retail coupons. Furthermore, the Honey app will also add to the online shopping experience by automatic coupon code application. Started in 2012, Honey boasts of annual revenues of two hundred million dollars ($200M).
Paypal Honey acquisition directly aimed to tackle Square’s prominence
The Paypal Honey acquisition is intended to address the growing influence of Square. The Square payment app is hugely popular with retailers and shoppers alike. The crypto-friendly Square Cash app has further tapped into the market share as it supports crypto payment.
PayPal, on the other hand, isn’t that friendly with crypto space. It backed out of Libra Association months after pledging support. Earlier, it has denied permission to crypto payments through its exchanges and retail partners. Paypal Honey acquisition deal may change all this!
Image source: Pixabay
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