With Honey Deal, PayPal Joins Customer Journey Sooner

With Honey Deal, PayPal Joins Customer Journey Sooner by Christine Love

Online and mobile payments platform PayPal has taken what many observers might consider a bold move by spending $4bn on the company behind Honey, a deal-finding Chrome extension that debuted sometime around 2012.

The purchase seems to suggest that PayPal wants to expand beyond its core payment business, a plan hinted at by a recent conference call involving the company that described the Honey deal as a “springboard” for future commercial endeavors.

Customer Journey

Much like many of the world’s greatest inventions, Honey had its inception in a desperate bid to buy a less expensive pizza. Creator and entrepreneur Ryan Hudson was unable to find a coupon online to get money off a takeaway and so threw together a prototype of the Honey browser app one evening. With the help of co-founder George Ruan, Honey would eventually become one of the most popular deal-finding tools available online and a darling sponsor of many YouTube channels.

But why Honey? And what does the move mean for PayPal’s future mission? It’s possible to answer both questions by considering where in the customer journey PayPal joins the transaction – the very end. The acquisition of Honey, which is usually accessed by consumers much earlier in their shopping experience, means that PayPal bookends the entire purchasing process, making the company something of a shopping companion rather than a mere payment option.

Top Sellers

In its recent press release, PayPal wrote that Honey would increase “sales and customer engagement for its merchants.” It’s likely then that PayPal merchants will soon be able to become preferred deal providers in much the same way that PayPal owners eBay offer the Top Sellers badge to long-serving and especially lucrative stores. PayPal imagines playing a “more meaningful” role in customers’ lives – even despite the vast reach it already has.

It’ll be no surprise to web users that PayPal is one of the most popular payment methods in the world, and has even recently begun to break into niches that had previously focused on more traditional plastic options, like the gaming industry. In addition to other payment options, an online casino platform like NetBet, for instance, utilizes PayPal’s billing agreement feature to provide instant processing of deposits, without the requirement for repeated logins over different play sessions. Much the same applies to popular MMO Runescape as well as other titles across the video gaming spectrum.

Social Commerce

It’s debatable whether PayPal’s recent interest in social commerce, i.e. items sold through businesses on social networks, has anything to do with the acquisition of Honey. However, the company expects social purchasing to double in overall value before mid-2020. The idea does align with PayPal’s desire to capture consumers’ attention in the places they go for inspiration (e.g. Facebook, Pinterest), to paraphrase senior director Nicola Longfield.

Being able to stimulate the appetite for shopping and direct the customer through to a completed purchase would be a powerful e-commerce tool indeed. After all, the ultimate beneficiary is likely to be the consumer. As we very well know, there isn’t a person on earth who would turn down a tool that finds them $1 off an emergency pizza.

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Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.