PayPal has acquired ecommerce returns solution Happy Returns as it continues to expand beyond payments, with the aim of becoming a “digital commerce enablement engine.” Terms of the deal were not disclosed.
The Happy Returns purchase follows PayPal’s acquisition of coupon plug-in Honey in January 2021. These new additions, in combination with PayPal’s existing checkout solutions — which include both online and in-store offerings via PayPal and Venmo — will enable PayPal to serve a broader section of the ecommerce customer journey, from discovery to payments to returns and exchanges.
“The post-purchase experience and returns is one area of the customer journey that we have had our eye on for a while, and we have heard from merchants that the need for solutions has increased during the recent shift to online commerce,” said Frank Keller, SVP of Consumer In-Store and Digital Commerce at PayPal in remarks shared with Retail TouchPoints.
PayPal has been an investor in Happy Returns since 2019. Now, the Happy Returns solution — which combines box-free, in-person returns drop-off services with software for managing returns processes behind the scenes — will serve as the foundation for PayPal’s post-purchase offerings to both merchants and customers.
The Happy Returns network currently includes more than 2,600 drop-off locations in 1,200+ metro areas across the U.S. Under the PayPal banner, Happy Returns plans to focus on improving its platform and expanding its footprint.
“We have a deep respect for PayPal’s ecommerce leadership, inclusive and innovative company culture, and commitment to expanding access to the global economy, and couldn’t be more thrilled to be joining the PayPal family,” said Happy Returns Co-founders David Sobie and Mark Geller in a blog post announcing the news.