PayPal Acquires Start-Up that Helps Customers Return Their Purchases

Within the past 6 years, Happy Returns was created as essentially a system for returning items that have been purchased online. Happy Returns helps consumers returning online items, which can generally be tedious and costly for all involved parties, as a centralized location, making it easier to return items from most retailers in one place.

In turn, this system has provided in-person, box-free return drop offs as an alternative to the painful and difficult process of online returns. The progress of Happy Returns over time has been monumental. Happy Returns now involves more than 2,600 drop-off locations in over 1,200 metropolitan areas in the United States. Hundreds of brand partners now utilize their returns software and reverse logistics software, and across the board, many individuals seem enthusiastic regarding this new type of returns experience.

Recently, Happy Returns has made the choice to collaborate with PayPal, with whom they have always had a close relationship. When joined with PayPal, Happy Returns will continue to offer in-class returns to retailers and shoppers. The platform will enable PayPal's commerce beyond discovery and payments to the post-purchase step. Happy Returns, with PayPal's support, will focus on enhancing their platform, and to come up with environmentally friendly ways to create and process returns.

Frank Keller, senior vice president of consumer in-store and digital commerce at PayPal, said to CNBC in a phone interview: "The post-purchase experience is something we've been looking into, since it's such a pain point - people want to shop online and return in store, and vice versa. For retailers, we're providing more comprehensive services beyond payments."

The attainment of Happy Returns, from the viewpoint of Keller, will help to resolve the complicated logistics of returning and shipping goods for merchants, and help to drive foot traffic to businesses as they reopen.

All in all, the joining of forces with PayPal and Happy Returns has thus far proven to be successful. This particular collaboration will not only make the process of returning physical items far easier for customers, but will also give PayPal much more business, and to help them improve customer experiences.