The acquisition, which is PayPal’s largest to date, will give the payments giant a foothold earlier in the customer’s shopping journey.
Honey claims to have 17 million monthly active users and the possibility of pushing its technology towards PayPal and its subsidiary Venmo’s 300 million users.
Honey’s plugin functions on 30,000 e-commerce sites and it has saved those 17 million shoppers over 2 billion.
PayPal aims to add Honey’s technology to its own product line, expanding its reach to PayPal’s 300 million users.
The acquisition also gives PayPal a way to fight back against the increased competition from Apple, Google, Facebook and other tech companies that have entered the payments market in recent years.
“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,” PayPal CEO Dan Schulman said.