PayPal’s coupon extension loses millions of users amid scandal

PayPal-owned coupon extension Honey is facing a sharp decline in its user base.

PayPal-owned coupon extension Honey is facing a sharp decline in its user base. The drop comes amid mounting criticism and legal action from online creators.

According to reports, the browser extension has lost millions of users as accusations of affiliate misconduct continue to draw scrutiny. PayPal acquired Honey back in 2020 for $4 billion, and the tool has faced repeated controversy in the years since.

Data from MegaLag shows Honey’s user base has dropped by more than seven million. The extension has fallen from roughly 20 million users on the Chrome Web Store down to about 13 million.

In a significant legal development, US District Judge Beth Labson Freeman allowed a second amended complaint from content creators to move forward. The ruling marks another setback for PayPal as it continues defending the extension in court.

Alongside the drop in users, Honey’s coupon database has also shrunk considerably. Its collection of active codes has fallen from 90,000 to around 50,000, with roughly 10,000 of the remaining codes reportedly already expired.

In response to the broader controversy, Google has updated its Chrome Web Store policies to curb similar link-manipulation practices. The updated rules now require clearer transparency around how extensions monetise user activity.

Separately, Rakuten Advertising has rolled out a new system aimed at preventing extensions from claiming last-click credit on purchases. The move is seen as a direct response to the kind of practices Honey has been accused of.

Honey had built its reputation by promising users automatic savings, claiming it could scan the internet to find the best available coupon codes for any purchase. That promise, heavily promoted through YouTube sponsorships, helped the extension attract millions of downloads over the years.

However, growing legal pressure and declining trust appear to be reshaping how both users and industry regulators view coupon-finding tools going forward. With lawsuits ongoing and user numbers continuing to slide, Honey’s reputation looks set to remain under scrutiny in the months ahead.