Paypal Holdings Inc (NASDAQ:PYPL) agreed to take over Happy Returns to expand into online retail beyond its payments business.
Businesses can clinch new customers
According to a communication from Paypal, it will purchase a Santa Monica-based startup – Happy Returns, which allows online shoppers to return items in person. With the economy opening up, the deal will enable businesses that use Paypal services to add more value and add new customers. Happy Returns employ 120 persons to carry out its business operations.
SVP (digital commerce and consumer in-store), Frank Keller, said the company focuses on post-purchase experience and help the customers to return products, which are purchased online, in person or vice-versa. Paypal offers a comprehensive service for retailers besides payments.
Paypal previously acquired a browser extension – Honey in 2019 for $ 4 billion.
The customers can use the browser extension – Honey to find coupons and enjoy lucrative discounts on online shopping.
In March 2021, Paypal clinched Curv, a cryptocurrency Security Company, for $200 million.
The takeover of Happy Returns helps the merchants solve issues like shipping and accepting the returns besides driving traffic to those businesses. It opens an opportunity for the merchants to approach Paypal for this product and boost their business.
Peter Thiel and Max Levchin have incorporated Happy Returns and run its operations with 31 million businesses. Dan Schulman, CEO of Paypal, said online shopping is an essential factor to promote growth. The deal perfectly fits its commerce platform.
2,600 drop off locations
Happy Returns maintains 2,600 drop-off locations allowing online shoppers to return products in person for an exchange or avail of an immediate refund. It also reduces the impact on the environment. The company uses reusable totes for returns in place of cardboard. It works with D2C brands like Steve Madden, Dressbarn, Everlane, Revolve, and Rothy’s.
Decent revenues for Paypal
Paypal derived decent revenues in the recent quarters because of growth in the online shopping business spurred by the pandemic. During an earnings call in Q1 2021, Dan revealed his plans to introduce an all-in-one personalized app – the next generation digital wallet in 2021. It allows the customers to customize their preferences and enjoy unique shopping, payments, and financial services.