- What PayPal Honey is and who owns it
- How Honey rewards work through PayPal Rewards
- Does Honey save you money?
- The Honey affiliate link controversy, explained neutrally
- Where the Honey lawsuits stand
- Honey facts at a glance
- Should you keep Honey installed?
- Spotting fake Honey and PayPal messages
- Frequently asked questions
PayPal Honey is a legit browser extension owned by PayPal, which bought it in 2020, and it does search for promo codes and award PayPal Rewards points. It's also faced creator lawsuits and criticism over affiliate links and which codes it shows. It won't empty your wallet, but it may not always find the lowest price.
Honey was the extension every YouTuber seemed to recommend, then suddenly it was the extension every YouTuber was criticising. If you've got it installed and you're wondering whether to keep it, you deserve a calm answer rather than a hot take. I've read what PayPal's own help pages say about Honey and its rewards, plus what reputable sources report about the controversy, so you can decide for yourself.
What PayPal Honey is and who owns it
Wikipedia says Honey was founded in Los Angeles in 2012 by Ryan Hudson and George Ruan. It makes a browser extension that automatically tries online promo codes at checkout, and it earns its money from commissions on purchases at partner retailers. PayPal announced it had completed its purchase of Honey for approximately 4 billion US dollars in cash at the start of 2020, and the trade name changed to PayPal Honey in 2022.
So Honey isn't a fly-by-night app. It's part of one of the biggest payments companies in the world, which is why the criticism of it got so much attention.
How Honey rewards work through PayPal Rewards
Honey's old points system now runs through PayPal Rewards. PayPal's help centre says you earn points when you take up offers through PayPal and PayPal Honey features, with no sign-up and no cost to join if you already have a PayPal account. At checkout, 100 points are worth one US dollar.
The waiting time is the bit people miss. PayPal says points appear as pending within 1-14 days of a qualifying purchase and can stay pending for up to 90 days, during which you can't use them. Points also have no value until redeemed, can expire, and are reduced if you return the item.
- Apply points toward a purchase at PayPal checkout.
- Exchange them for rewards, such as gift cards.
- Donate them to a charity.
Does Honey save you money?
Honey can find a working code, and when it does, you save. The criticism is about what it doesn't show you. According to Wikipedia's summary of the allegations made by YouTuber MegaLag in 2024, partnered retailers could control which codes Honey users saw. If that's right, the code Honey applies may be the one a retailer is happy to give away, not the biggest discount available.
My practical advice: treat Honey as one tool, not the final word. If you're about to spend a lot, it's worth a quick search for the retailer's own offers or a newsletter sign-up discount before you pay. My round-up of sites for saving on tech is a good next step for bigger gadget purchases.
The Honey affiliate link controversy, explained neutrally
The bigger row is about creators. Wikipedia reports that MegaLag's 2024 video alleged Honey changed affiliate links at checkout, so Honey was credited with a sale even when no code was applied, rather than the creator whose link the shopper had clicked. PayPal told The Verge that Honey follows industry rules and practices, including last-click attribution.
Google then tightened its rules. 9to5Google reported that in 2025 the Chrome Web Store updated its affiliate ads policy so extensions may only add affiliate links, codes or cookies when they give users a direct and transparent benefit, after a related user action, with the practice disclosed in the store listing. Wikipedia says Honey changed its extension to stop claiming revenue where no discount applied.
Wikipedia also reports that Honey lost about 3 million of its 20 million users within two weeks of the first video, that a later video in 2025 alleged Honey contained code to avoid detection by affiliate networks, which PayPal acknowledged and said it had disabled in 2026, and that Rakuten Advertising removed Honey from its affiliate network.
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Where the Honey lawsuits stand
Wikipedia records that three law firms, one run by the YouTuber LegalEagle, filed a class action against PayPal in US federal court in late 2024 on behalf of creators. In late 2025, Judge Beth Labson Freeman dismissed the initial suit, saying it hadn't identified a cognizable injury, and the plaintiffs filed an amended complaint in early 2026. Other related suits were allowed to continue.
These are civil claims, and none of this is a finding that shoppers were cheated out of money. Court cases move on, so check a current news source if you need the latest position. If you're a creator who earns from product links, my piece on the YouTube Shopping affiliate programme is worth a read alongside this.
Honey facts at a glance
| Question | Answer |
|---|---|
| Who owns Honey? | PayPal, since 2020 |
| Founded | 2012, Los Angeles |
| How it makes money | Commissions on purchases at partner retailers |
| Rewards | PayPal Rewards points, 100 points to one US dollar |
| Pending time | Points appear in 1-14 days and can stay pending up to 90 days |
| Main criticism | Affiliate link handling and which codes it shows |
Should you keep Honey installed?
Honey is legit in the sense that matters to most shoppers: it's owned by PayPal, it's free, and the rewards are explained in PayPal's own help pages. Whether you keep it depends on how you feel about the controversy. If you're a shopper, it's a convenience tool that won't always find the best deal. If you're a creator, the affiliate questions are the bit to watch. Either way, compare prices yourself on big purchases.
Spotting fake Honey and PayPal messages
Because Honey sits inside PayPal now, scammers send emails pretending to be PayPal Rewards notices. Real points show up in your PayPal account. PayPal won't ask you to pay a fee to release points or to log in through a link in an unexpected email, so open the PayPal app yourself to check your balance.
Frequently asked questions
Is Honey legit?
Yes. PayPal Honey is a browser extension owned by PayPal since 2020. It looks for promo codes at checkout and awards PayPal Rewards points on eligible offers.
Is Honey safe to use?
It's a real PayPal product, but it has faced lawsuits and criticism over how it handles affiliate links and which codes it shows. Read the controversy and decide whether you're comfortable.
How much are Honey points worth?
Honey rewards now run through PayPal Rewards, where PayPal's help centre says 100 points are worth one US dollar at checkout.
Why are my Honey points pending?
PayPal says points appear as pending within 1-14 days of a qualifying purchase and can stay pending for up to 90 days before you can use them.
What is the Honey lawsuit about?
Creators allege Honey replaced their affiliate links at checkout so Honey got the commission. PayPal says it follows industry practices. The initial suit was dismissed in 2025 and an amended complaint followed in 2026.
