PayPal Honey

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PayPal Honey
TypeSubsidiary
IndustryCashback website, online coupons
FoundedOctober 2012 (2012-10)
FoundersGeorge Ruan[1]
Ryan Hudson[2]
HeadquartersLos Angeles, California, United States[3]
Area served
Canada, United States
Key people
George Ruan
(CEO)
Ryan Hudson
(Co-founder)
Number of employees
209 (worldwide, 2018)
ParentPayPal[4]
Websitejoinhoney.com

PayPal Honey, formerly known as Honey, is an American technology company and subsidiary of PayPal known for developing a browser extension that aggregates and automatically applies online coupons on eCommerce websites.

History[edit]

Entrepreneurs Ryan Hudson and George Ruan founded Honey[5] in November 2012 in Los Angeles, California, after building a prototype of the browser extension in late October 2012. A bug tester leaked the tool to Reddit, where it went viral.[6] By March 2014, the company had 900,000 organic users.[7]

Honey raised a $26 million Series C round, led by Anthos Capital in March 2017.[8] By January 2018, Honey raised a total of $40.8 million in venture backing.[9]

On January 6, 2020, it was acquired by PayPal for about $4 billion.[10][11][12] Nearly immediately after PayPal acquired Honey, Amazon claimed to its users that the extension was a security risk that sold personal information. A Wired Magazine article, written shortly after the acquisition, questioned whether the claim was motivated by PayPal's newly acquired ability to compete against Amazon.[13]

In 2022, the company was renamed PayPal Honey.

Marketing[edit]

Logo used until 2022.

PayPal Honey has become known for its heavy use of YouTube advertising and channel sponsorships for its marketing. Similarly to NordVPN and Amazon's Audible, it offers paid sponsorships to popular YouTube channels such as MrBeast to expose the service to its viewers.[14] In 2020, PayPal Honey launched a web series called "Honey Originals", where Honey partners were interviewed, including segments "20 Questions with _" and "Add To Cart with _".[15][16]

Revenue[edit]

PayPal Honey's revenue comes from a commission made on user transactions with partnering retailers.[17] When a member makes a purchase from merchants partnering with the company, Honey shares part of their commission with the member in a cashback program.[18] Users are notified of price drops and price history on selected items sold by participating online stores.[19]

References[edit]

  1. ^ "Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal". BloombergQuint. Retrieved 2020-01-28.
  2. ^ "Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal". BloombergQuint. Retrieved 2020-01-28.
  3. ^ Vincent, Roger (August 2018). "Online coupon firm Honey taking over historic Coca-Cola plant in Arts District". Los Angeles Times. Retrieved 2019-01-03.
  4. ^ "Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal". BloombergQuint. Retrieved 2020-01-28.
  5. ^ "Coupon Duo Now Worth $1.5 Billion After Honey's Sale to PayPal". BloombergQuint. Retrieved 2020-01-28.
  6. ^ Shontell, Alyson. "New Coupon Startup 'Honey' Has Had 9 Successful Investor Meetings In A Row". Business Insider.
  7. ^ "Honey Introduces A Universal Cart For Online Shoppers Where Savings Are Automatically Applied". TechCrunch.
  8. ^ Pierson, David. "Can't find a coupon code? This L.A. start-up does all the work for you". Los Angeles Times.
  9. ^ Ketchum, Dan (11 April 2019). "Got a Problem? Turn It Into a Business Like These 15 Companies". www.gobankingrates.com.
  10. ^ "PayPal Completes Acquisition of Honey" (Press release). PR Newswire. January 6, 2020.
  11. ^ Taulli, Tom. "Why PayPal Paid $4 Billion For Honey Science". Forbes. Retrieved 2020-01-28.
  12. ^ Peters, Jay (2019-11-20). "PayPal acquires the company behind the Honey deal-finding extension for $4 billion". The Verge. Retrieved 2020-02-25.
  13. ^ Lee, Dami (2020-01-09). "Amazon suspiciously says browser extension Honey is a security risk, now that PayPal owns it". The Verge. Retrieved 2022-02-08.
  14. ^ Weiss, Geoff (November 21, 2019). "Browser Extension 'Honey', A Frequent Shane Dawson And MrBeast Sponsor, Acquired For $4 Billion". Tubefilter. Retrieved 11 June 2020.
  15. ^ Archived at Ghostarchive and the Wayback Machine: 20 Questions with MrBeast | Honey Originals. YouTube.
  16. ^ Archived at Ghostarchive and the Wayback Machine: Add to Cart with Gibi ASMR | Honey Originals. YouTube.
  17. ^ Rey, Jason Del (2018-04-02). "Honey — the under-the-radar coupon startup — has held talks to raise around $100 million in a new investment". Recode. Retrieved 2019-01-03.
  18. ^ Kane, Libby. "A struggling dad built an app to buy his kids cheaper pizza — and now his company has 5 million downloads and $40 million". Business Insider. Retrieved 2019-01-03.
  19. ^ Ellingson, Annlee (January 31, 2018). "How Honey helps users keep their New Year's resolution to save money". American City Business Journals.