PayPal has completed its previously announced acquisition of shopping and rewards platform Honey Science.

The American payments major paid nearly $4bn in cash for the transaction.

The acquisition is expected to drive sales and customer engagement for PayPal’s merchant partners.

PayPal president and CEO Dan Schulman said: “We’re thrilled to complete this transformative transaction and to welcome the Honey team to the PayPal family.

“The addition of Honey to our platform enables a significant step forward in our commitment to provide powerful services and tools for merchants and consumers, move beyond our core checkout proposition and significantly enhance the shopping experience for our 300 million consumers and merchants.”

Honey Science acquisition: Background

In November last year, PayPal signed the agreement to acquire Honey Science.

Honey Science operates as a discovery tool for online shoppers enabling them to track prices of items. The company also offers alerts, discounts and other rewards.

The Los Angeles-based firm has nearly 17 million monthly active users.

Honey Science will now operate as part of PayPal’s global consumer product and technology organisation. Its co-founders George Ruan and Ryan Hudson will continue to lead the business.

The Honey Science acquisition comes a month after PayPal completed the acquisition of Chinese payments company Guofubao Information Technology (GoPay).

PayPal acquired a 70% stake in GoPay, which holds payment business licence in China. The financial details were not divulged.