PayPal Announces Plans to Acquire Happy Returns
The payment company is planning to enter the retail sector with the takeover.
Paypal Holdings Inc (Nasdaq: PYPL) has agreed to acquire Happy Returns to expand beyond payments into online retail. According to a release from PayPal, a Santa Monica-based startup - Happy Returns - will buy it, which will allow online shoppers to return items in person. As the economy opens up, the deal allows companies using Paypal services to add more value and attract new customers. Happy Returns employs 120 people to keep business running. Frank Keller, SVP (Digital Commerce and Consumer In-Store) said the company is focused on the after-purchase experience, helping customers personally return products purchased online, or vice versa. In addition to payment transactions, PayPal offers a comprehensive service for retailers. PayPal previously acquired a browser extension - Honey in 2019 for $ 4 billion. Customers can use the browser extension - Honey to find coupons and enjoy lucrative discounts when shopping online. In March 2021, Paypal acquired Curv, a cryptocurrency security firm, for $ 200 million. The Happy Returns acquisition will help merchants resolve issues like shipping and receiving returns while increasing traffic to these stores. It opens up the possibility for merchants to turn to PayPal for this product and get their business going. Peter Thiel and Max Levchin founded Happy Returns and run the company with 31 million stores. Dan Schulman, CEO of Paypal, said online shopping is a key driver of growth. The deal fits in perfectly with its commerce platform. Happy Returns operates 2,600 drop-off points that allow online shoppers to return products in person for an exchange or for an instant refund. This also reduces the impact on the environment. The company uses reusable containers for returns instead of cardboard. It works with D2C brands like Steve Madden, Dressbarn, Everlane, Revolve and Rothy's.