Keeping in line with a 2019 that saw significant consolidations and acquisitions throughout the fintech space, the new year has just started and global brand PayPal is already three collaborations in.
The payments giant has completed its acquisition of Honey Science Corporation, along with a partnership with ecommerce platform MercadoLibre and the acquisition of 70% share in China’s GoPay.
PayPal completed its acquisition of Honey Science Corporation – an L.A.-based tech company specializing in enhancing the online shopping experience – on January 6. The $4 billion deal marks PayPal’s largest acquisition to date, according to TechCrunch, and it will move the brand beyond the checkout page into the actual shopping experience.
“What’s exciting is that we can take the functionality Honey now offers — which is product discovery, price tracking, offers and loyalty — and build that into the PayPal and Venmo experiences,” explains PayPal SVP of Global Consumer Products and Technology, and former Xoom CEO, John Kunze in the same TechCrunch article. “When Honey says they’re putting money in the pockets of their customers — that’s perfectly in line with what we want to do. We want to make digital commerce and financial services more affordable, easier to use, more fun and more accessible to people around the world,” he says.
But the 2020 momentum started with China-based GoPay. A significant move for PayPal, the acquisition of GoPay marked its official entrance into China’s payments market. It also makes the brand the first foreign platform with a license to provide online payments in China’s ecosystem and only the second (behind American Express) to achieve success there.
“We’re pleased to complete this historic transaction, which enables us to broaden our participation in such a dynamic market,” said Dan Schulman, president and CEO, PayPal in the press release. “This important step will allow us to be a stronger partner to Chinese financial institutions and technology platforms. We look forward to contributing to the growth of China’s e-commerce and payments ecosystem.”
Shortly after PayPal staked its official claim in the Chinese marketplace, the brand then announced a partnership with one of Latin America’s largest ecommerce platforms, MercadoLibre.
With this collaboration, PayPal’s user base (currently 300 million customers) will benefit from access to hundreds of thousands of new merchants as the brand will now appear as a payment option in the Mercado Pago online checkout for people in Brazil and Mexico. Similarly, PayPal will offer Mercado Pago as a payment option for their merchants around the world so those local to Brazil and Mexico can pay using their preferred method of payment.
According to Schulman via his announcement, the collaboration will enable the two companies to take steps toward the commencement of their shared vision: “to help businesses compete globally and offer innovative financial solutions to help people who are underserved by the traditional financial system.”
PayPal’s effort to combine forces has them starting the year off strong. We’ll see how it all unfolds.