PayPal has entered into an agreement to acquire shopping and rewards platform Honey Science in a deal valued at $4bn.

Founded in 2012, Honey works as a discovery tool for consumers to find savings while shopping. The platform can help track prices as well as provides rewards, offers and alerts.

The platform currently has a network of around 17 million monthly active users and 30,000 online retailers.

PayPal expects the acquisition to increase sales and customer engagement for its merchant partners.

The deal can also boost Honey’s adoption as PayPal and its person-to-person payments network Venmo have over 275 million users.

The acquired firm can also source exclusive offers from PayPal’s network of 24 million merchant.

PayPal president and CEO Dan Schulman said: “The combination of Honey’s complementary consumer products with our platform will significantly enhance our ability to drive engagement and play a more meaningful role in the daily lives of our consumers.

“As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalised offers, and drive incremental sales.”

After the completion of the acquisition, Honey will continue its operations in Los Angeles, California.

The platform’s co-founders George Ruan and Ryan Hudson will lead their team under PayPal’s global consumer product and technology business.

Hudson added: “Combining PayPal’s assets and reach with our technology, we can build powerful new online shopping experiences for consumers and merchants.

“We’ll have the ability to help millions of retailers efficiently reach consumers with offers that deliver more and more value to Honey members.”

In May this year, PayPal agreed to acquire Swedish payments startup iZettle for $2.2bn.