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  • Players’ Strategy
  • United States

PayPal acquires startup Happy Returns


  • PayPal announced today it’s acquiring Happy Returns, a returns solution provider that offers online shoppers access to easier ways to send back unwanted merchandise to retailers without having to box it up and ship it themselves.
  • Happy Returns nearly started six years ago with a value proposition that was to increase convenience and sustainability of the returns process for online shopping.
  • Happy Returns offers a combination of software, services and logistics that allows retailers to manage their returns through their own retail stores, by carrier, as well as through Happy Returns’ “Return Bar” locations.
  • Happy Returns relies on the creation of a network of retail partners who can use its returns software to receive products from online buyers.
  • The retailers in the Happy Returns network benefit from a new flow of visitors and potential customers into their stores.
  • The amount of the purchase of Happy Returns by PayPal has not been disclosed.



Happy Returns has developed a consequent network of:

  • more than 2,600 drop-off locations in over 1,200 metropolitan areas across the United States
  • hundreds of partner brands
  • PayPal was one of the first investors in Happy Returns



  • Circumventing a historical problem: The "last mile delivery" has always been a painpoint for retailers. Amazon has solved this problem by making return free. But the solution is neither convenient nor sustainable. Happy returns offers an alternative that tries to respond to these problems.
  • Accelerate growth: Happy Returns plans to continue enhancing its platform and growing its reach with PayPal's support. It is also an opportunity to impose the service on the 31 million e-merchants who are PayPal customers.
  • Increase customer knowledge : To play a more significant role in consumers' post-purchase experience and the returns process. The acquisition will allow the payment platform to follow consumers from discovery through payments to returns and exchanges



  • PayPal's growth has raised significantly this beginning of year and its development goes through acquisitions and new projects. The acquisition of  online bargain platform Honey in 2019 was already an important step to develop its ecosystem of services outside of its core business. With Happy Returns Paypal shows its ambition to  play a more significant role in consumers' purchase experience.
  • In April, Affirm bought Returnly, another returns startup, for $300 million and is expected to close the deal by the end of June.