PayPal recently acquired the Honey rewards app in a $4 billion purchase, which is scheduled to close in the first quarter of 2020. The Honey rewards app has approximately 17 million users a month and it helps people find various online discounts and coupons. Following the purchase, PayPal will look to integrate Honey into it's own apps, including Venmo.
PayPal's purchase indicates that the company will continue to venture into e-commerce services. The purchase is significant, due to the fact the Honey is a successful platform on its own. During the course of the previous year, Honey produced $100 million in total revenue. It also has a history of working with a number of different industry-leading companies including Amazon, adidas, Walmart and more.
Rewards App Purchases
PayPal Purchased the Honey Platform and Will Integrate It into Its Own Apps
Trend Themes
1. Mobile Rewards Apps - The acquisition of Honey by PayPal highlights the growing trend of mobile rewards apps as a way to enhance customer engagement and increase sales.
2. Integration of Discounts and Coupons - PayPal's integration of Honey into its own apps signals the trend of combining payment services with discount and coupon platforms to provide a more comprehensive digital shopping experience.
3. E-commerce Expansion - PayPal's purchase of Honey reflects the trend of established payment companies expanding into the e-commerce space to tap into new revenue streams and strengthen customer loyalty.
Industry Implications
1. Payment Services - The integration of rewards apps like Honey presents an opportunity for payment service providers to differentiate their offerings and attract more customers.
2. Digital Retail - The integration of discounts and coupons within payment apps opens up possibilities for digital retail companies to leverage the seamless shopping experience and increase customer conversions.
3. Marketing and Advertising - The rise in popularity of mobile rewards apps creates opportunities for marketing and advertising agencies to collaborate with these platforms to reach a larger customer base and drive sales for their clients.