Amazon Takes a Swipe at PayPal's $4 Billion Acquisition (2024)

“We only use data in ways that directly benefit Honey members—helping people save money and time—and in ways they would expect. Our commitment is clearly spelled out in our privacy and security policy,” a spokesperson for Honey told WIRED.

Honey also says that it doesn’t sell the shopping data it gleans from customers. The company makes money by charging some retailers a small percentage of sales made with the coupons it finds—but Amazon has never been one of them.

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Amazon’s security warning last month caught Honey by surprise, and the company scrambled to respond. It was forced to temporarily disable several of Honey’s features—like Droplist, which tracks the price of specific items—to prevent the message from appearing to more people. The changes weren’t announced in an official blog post or message to users.

“We’re aware that Droplist and other Honey features were not available on Amazon for a period of time. We know these are tools that people love and worked quickly to restore the functionality. Our extension is not—and has never been—a security risk and is safe to use,” a Honey spokesperson said.

Browser extensions can be incredibly invasive, and it’s still a good practice to be wary of any that you install in your browser. Amazon warned Honey users that the extension can “read or change any of your data on any website you visit,” but this is a basic functionality of many extensions—which is why installing only ones you can trust is important. In fact, Amazon has a browser extension of its own called Amazon Assistant. It also tracks prices, just like Honey, and allows you to compare items on other retailers to those on Amazon. When users install Amazon Assistant from the Chrome Store, Google also notifies them it can “read and change all your data on the websites you visit.”

Honey says it regularly engages with security firms to assess its protections. Last summer, researchers from the cybersecurity firm Risk Based Security documented a vulnerability in Honey’s extension that malicious websites could exploit to steal user information. But the bug didn’t concern Honey’s own data-collection practices, and it was patched on Firefox and Google Chrome in early 2019, according to Risk Based Security. “If ever an individual or independent researcher contacts us about a potential vulnerability, we engage with that person to understand and remedy the issue (if there is one),” the Honey spokesperson said.

There’s still the possibility that Amazon found a legitimate security problem with Honey, but it won’t say what. WIRED also reached out to Google and Firefox, which each host extension stores for their popular web browsers, but neither company could immediately comment.

Amazon is extremely protective of its shopping and customer data. While Honey may not have been a concern when it was only a small startup, it’s now owned by the financial behemoth PayPal, which used to be part of eBay, an Amazon competitor. Amazon still doesn’t accept PayPal as a direct payment option. In the ecommerce world, there’s no incentive to play nice.

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Amazon Takes a Swipe at PayPal's $4 Billion Acquisition (2024)

FAQs

Does Amazon own honey? ›

By January 2018, Honey raised a total of $40.8 million in venture backing. On January 6, 2020, it was acquired by PayPal for about $4 billion. Nearly immediately after PayPal acquired Honey, Amazon claimed to its users that the extension was a security risk that sold personal information.

What is PayPal honey? ›

Honey is a suite of online shopping tools that have been part of the PayPal family for several years - helping customers discover deals and earn rewards while shopping at participating sites.

Who is the largest honey supplier? ›

Major producers of honey worldwide 2021

China produced over 472,000 metric tons of honey, almost more than five times the amount produced in Turkey, the second top producer that year. Iran, Argentina, and Ukraine rounded out the top five producers in 2021.

Is PayPal Honey any good? ›

Bottom line. Honey is an easy and free way to save money on your online purchases. While it's available as both an app and a browser extension, it's probably easier for most consumers to use the browser extension as it doesn't require you to use a separate app when you shop.

Does PayPal Honey work with Amazon? ›

Shop on Amazon

Honey can help you find better prices on products you buy, and it works to track prices and price history on your behalf. Honey also searches for coupons you can use on Amazon.com, which can lead to even more savings.

How does PayPal Honey make money? ›

Honey makes commissions from our merchant partners. We earn these commissions when a member uses Honey to find available savings or to activate PayPal Rewards. We work with affiliates to help confirm your purchase, so we can get a commission from the merchant.

Why did PayPal pay so much for Honey? ›

Why Did PayPal Acquire Honey? Part of the reason PayPal was so eager to acquire Honey was because of the large base of over 17 million monthly active users that the company has been able to attract. More importantly, Honey has also shown a strong track record of growth, and their mission matches closely with PayPal's.

Who is the owner of honey? ›

How Honey Co-Founder Ryan Hudson Built a $4 Billion Company From a Browser Extension. In just seven years, Ryan Hudson took a browser extension and created Honey, a shopping and rewards platform recently purchased by PayPal for $4B.

Who bought honey company? ›

PayPal said Wednesday that it's buying Honey, which is best known for a tool that helps consumers find deals while shopping online. The $4 billion deal marks PayPal's biggest acquisition ever, topping last year's $2.2 billion purchase of iZettle. The deal is expected to close in the first quarter of 2020.

Is honey owned by Capital One? ›

Honey is part of the PayPal family of companies and includes a PayPal cashout as a redemption option. PayPal funds can be transferred to a linked bank account, so it's easy to use the rewards you earn with Honey in the way you want. Capital One Shopping only offers gift cards as a redemption option.

Is honey safe to use on Amazon? ›

“Honey tracks your private shopping behavior, collects data like your order history and items saved, and can read or change any of your data on any website you visit,” Amazon said. “To keep your data private and secure, uninstall this extension immediately.”

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