Discount app from Paypal launched in Europe

Paypal bought Honey for $4 billion, and now the discount app launched in Germany and four other European countries. The launch in Europe was done quietly, with Paypal remaining silent on the matter so far.

Paypal has quietly launched its discount app Honey in Europe. It hit the German app store two months ago, and a month later it was available in the Netherlands, Spain, Italy, and France, as Finance Forward now reported. Honey did an initial test run for the German market back in 2020, when it ran more ads on Facebook and cited German companies as examples of discount promotions, Finance Forward researched.

In 2019, Paypal bought the start-up Honey for four billion US dollars - a price that surprised many, the company had previously raised only 40 million euros and not even received a billion-dollar valuation. But Paypal trusted in the offer: With Honey as an app or browser extension, parallel to shopping, it is displayed which discounts are to be fetched from the suppliers or if the price for the desired product drops, for loyal customers there are promotions at Honey that include discounts. Honey earns from the commissions.

With 325 million customers worldwide, Paypal has a big advantage to help Honey get a market launch. Paypal had high expectations for the Los Angeles-based company founded in 2012 by Ryan Hudson and George Ruan; so far, it's not scoring big. In 2020, Paypal's revenue grew 21 percent, while Honey accounted for just one percentage point. Paypal itself is currently valued at 350 billion US dollars and has so far remained silent on the market launch of its app in Europe - presumably the offer is to be expanded first until a big media hype is created around it.