Honey Review (2026)
PayPal Honey suits online shoppers who already use PayPal and want a browser extension that tests coupon codes at checkout and earns PayPal Rewards points at participating stores. The one thing to know: coupon codes are discounts, not rewards; points come only at stores where you activate rewards, and they expire unless you earn at least 10 points in every 365 days. Points are worth 1 cent each and can go to your PayPal balance, PayPal checkout, gift cards or a donation.
By Wealthy Pot Editorial · Facts checked October 20, 2026
Facts checked October 20, 2026 against Honey's own terms of service, help center and privacy pages (20 sources, listed below). We re-check prices about once a month. We do not earn a commission from PayPal Honey.
Honey at a glance
| How you earn | PayPal Rewards points at participating stores, via the extension or app; Exclusive Offers pay fixed points on some items [5] |
|---|---|
| Activation needed? | Yes: Activate Rewards, or Apply Coupons at checkout [5] |
| Typical earning | Set per store (a percentage, a range or fixed points) on the eligible subtotal before tax and shipping; coupon codes earn nothing [1] |
| Cash-out methods | PayPal balance, PayPal checkout, e-gift cards or a PayPal Giving Fund donation; see the cash-out table below [1] |
| Minimum | 1,000 points for a gift card; any whole number at PayPal checkout; for cash back, any minimum is shown when you redeem [6] |
| Point value | 100 points = $1; 80 points = $1 for donations. PayPal can change the rate [1] |
| Pending time | Shown within 1 to 14 days, pending up to 90 days; travel after the trip [1] |
| Inactivity rule | Points expire unless you earn 10+ points every 365 days (or make 3 eligible PayPal transactions, if linked) [1] |
| Cost | $0; no program fees [1] |
| How Honey makes money | Merchant commissions, part passed back as points [10] |
| Company | PayPal, Inc. (US contract); Honey Science LLC; parent PayPal Holdings, Inc. (Nasdaq: PYPL), owner since January 6, 2020 [2] |
| Platforms | Chrome, Firefox, Opera, Safari (Mac) and Edge extensions; iOS and Android app [9] |
| Availability | US program reviewed here; points only on purchases in US dollars [1] |
Getting your money out of Honey
| Cash-out method | Minimum | Fee | How long it takes |
|---|---|---|---|
| Cash to PayPal balance | Shown at redemption | $0 | Up to 24 hours |
| Points at PayPal checkout | Any whole number of points | $0 | At checkout |
| Gift card | 1,000 points | $0 | Emailed within 24 hours |
| PayPal Giving Fund donation | Shown at redemption | $0 (80 points = $1 donated) | Within 24 hours |
- What the balance is worth: 100 points = $1 (PayPal Rewards terms, March 17, 2025).
- Before you can cash out: Points show within 1 to 14 days and can stay pending up to 90 days.
- If you stop using it: Points expire unless you earn at least 10 points in every 365-day period. If Honey is linked to PayPal, 3 eligible PayPal transactions in that period also keep them.
From Honey's own terms and help pages. "None stated" means we found no fee for that method in them. Apps can change minimums and fees; the app shows the current ones before you redeem.
How Honey works
Honey does two separate things. At checkout, the extension tests coupon codes and applies the working code it rates best; Honey says it covers 30,000+ sites. That is a discount, not a reward. At participating stores, Honey also pays PayPal Rewards points (called Honey Gold until October 2022) once you click Activate Rewards, or Apply Coupons at checkout. Points are figured on the eligible subtotal before tax and shipping, and each merchant sets exclusions.
The rate is shown per store, for example "1-4% in Points". Exclusive Offers on some product pages pay fixed points after you click Apply Offer, once per person per item. If you link Honey to PayPal, points from PayPal app offers go into the same balance, and the link cannot be undone. Honey says merchants pay it commissions and it shares part of them as points.
Hypothetical example: you have 2,500 confirmed points. At 1 cent a point that is 2,500 x $0.01 = $25 cash back to your PayPal balance, which can take up to 24 hours. Or take two $10 gift cards (1,000 points each) and keep 500 points, or donate at 80 points per $1 for a $31.25 donation, which is not tax-deductible. Pending points cannot be redeemed.
Our cashback app comparison puts Honey's payout rules next to the other apps. Points are a small rebate on purchases you were making anyway; our budgeting app comparison covers tools for tracking that spending.
Pros
- No fee to use the extension or the Rewards Program
- Points convert to cash in your PayPal balance at 1 cent each
- Points can be spent at PayPal checkout in any whole number
- Coupon testing and points in one extension, on five desktop browsers plus mobile
- Points from PayPal app offers and Honey share one balance once linked
Cons
- Points expire unless you earn at least 10 in every 365 days
- Points can stay pending up to 90 days
- Returns and refunds remove points, even after they are confirmed
- Cash back needs a PayPal account, and linked Honey and PayPal accounts cannot be unlinked
- On October 20, 2026 the Chrome Web Store listing showed a 2.2 out of 5 rating from 179.6K ratings
- PayPal faces pending lawsuits over how Honey handled affiliate links and coupon codes
Who Honey fits, and who should skip it
A good fit if
- You use PayPal and want points paid into your PayPal balance at 100 points = $1.
- You shop online on desktop and want coupon codes tested at checkout without searching for them.
- You will earn at least 10 points a year, so points do not expire.
Look elsewhere if
- You want a shopping portal paying by PayPal or check: Rakuten pays four times a year, $5.01 minimum.
- You want rewards that do not expire: Capital One Shopping rewards do not expire while the account is open, but pay in gift cards only.
- You mostly buy groceries in stores: Ibotta pays on offers by receipt or loyalty account.
- You do not want an extension that records pages and purchases on shopping sites.
Limitations to know
- Returns, refunds and chargebacks can remove points, even confirmed ones, and cancel rewards already redeemed. [1]
- Honey's help center gives slightly different pending times than the agreement: points post in 2 to 14 days and stay pending about 60 to 90 days. Exclusive Offers are usually pending 7 days. [7]
- Missing points must be claimed within 90 days. Another rewards extension running at the same time can take the credit. [8]
- All redemptions are final, and gift cards cannot be canceled or exchanged once issued. [1]
- If your PayPal account is closed, PayPal may reset its points to zero; deleting the Honey account removes it completely. [11]
Honey compared with alternatives
| App | Cash-out methods | Minimum | If you stop using it |
|---|---|---|---|
| Honey | Cash to your PayPal balance, points at PayPal checkout, gift cards, or a PayPal Giving Fund donation | 1,000 points for a gift card; PayPal shows any cash-out minimum when you redeem | Need 10+ points every 365 days |
| Rakuten | PayPal, check, Bilt Points or Amex Membership Rewards points, sent four times a year; instant gift cards for select members | $5.01 in confirmed cash back | $5/month fee after 12 inactive months |
| Capital One Shopping | E-gift cards only; Shopping Rewards cannot be cashed out | $5.00 in Shopping Rewards | No expiry while the account is open |
| Ibotta | PayPal, bank transfer or gift cards (no Venmo) | $20, plus one redeemed offer, a 7-day wait after the first, and a verified phone number | $3.99/month fee after 180 inactive days |
- Pick Rakuten if you want cash back by PayPal or check four times a year from a shopping portal, with a $5.01 minimum.
- Pick Capital One Shopping if you want a coupon and price comparison extension whose rewards do not expire while the account is open and you are fine with gift cards.
- Pick Ibotta if you want cash back on grocery and drugstore offers by receipt or linked loyalty account, paid by PayPal or bank transfer.
Security and privacy
- Honey collects retailer names, page views, product information and searches on shopping sites, plus order value and whether an order was completed or returned. It uses shopping history for sponsored offers, including in PayPal and Venmo. [3]
- Honey says it does not sell personal information to third parties for money or share it for cross-context behavioral advertising. The Chrome Web Store listing says the extension uses Google Analytics. [3]
- Creator lawsuit: since December 29, 2024, content creators who earn affiliate commissions (first Wendover Productions LLC and Businessing LLC, later GamersNexus and others) have sued PayPal in federal court in Northern California, now In re PayPal Honey Browser Extension Litigation. They allege Honey replaced their affiliate IDs with its own at checkout and took their commissions. The court denied PayPal's motion to compel arbitration on November 7, 2025, and on June 22, 2026 denied its motion to dismiss the second amended complaint. Fact discovery closes January 18, 2027; a jury trial is set for October 18, 2027. Nothing has been proven; the case is pending. [18]
- US shopper lawsuit: in White v. PayPal Holdings, consolidated with Fitzgerald v. PayPal, US Honey users allege Honey favors coupon codes from its partner merchants over better codes. On February 23, 2026 the court sent two named plaintiffs to arbitration and refused for the others (PayPal is appealing that part). On August 31, 2026 it dismissed four plaintiffs' claims for lack of standing, with leave to amend by October 5, 2026; we did not confirm a new filing. Status as of that order; pending. [20]
- UK shopper lawsuit: in Campbell v. Honey Science, LLC, UK Honey users alleged Honey did not apply the best coupons because of merchant deals. The court dismissed the case with prejudice on June 15, 2026, and the plaintiffs appealed to the Ninth Circuit (docketed July 15, 2026). [19]
- The US Terms of Use include an arbitration provision and a waiver of the right to bring a class action lawsuit. [2]
Recent changes
| Date | What changed |
|---|---|
| Mar 17, 2025 | Current PayPal Rewards Program Agreement last updated. [1] |
| Mar 11, 2025 | Google updated its Chrome Web Store affiliate ads policy (enforced from June 10, 2025): a coupon extension "must not insert an affiliate link if no coupon or discount is found." We found no primary source on whether this changed how Honey works. [16] |
| Oct 17, 2022 | PayPal Rewards launched and Honey Gold became PayPal Rewards points. [15] |
| Oct 5, 2021 | Honey added cash back through PayPal as a redemption for US members; before this, redemptions were gift cards. [14] |
| Jan 6, 2020 | PayPal completed its purchase of Honey for about $4 billion. [13] |
Honey FAQ
Is Honey legit?
Honey has been owned by PayPal Holdings, Inc., a Nasdaq-listed company, since January 2020, and points are paid under PayPal's Rewards Program Agreement. In pending lawsuits, content creators allege Honey took their affiliate commissions and US shoppers allege it favored partner coupon codes; nothing has been proven. A UK shopper case was dismissed and is on appeal.
How does Honey pay out?
As cash back to your PayPal balance (up to 24 hours), points at PayPal checkout, e-gift cards or a PayPal Giving Fund donation. From your PayPal balance you can move the money to a bank. See the cash-out table below.
What is the minimum to cash out on Honey?
Gift cards need 1,000 points for US members, which is $10 at the standard rate. At PayPal checkout you can use any whole number of points. For cash back to PayPal, the agreement says any minimum is shown at the time of redemption.
Do Honey points expire?
Points expire unless you earn at least 10 points in every 365-day period. If Honey is linked to PayPal, 3 eligible PayPal transactions in that period, such as checkout payments or Send Money, also keep them.
Are Honey rewards taxable?
PayPal's Rewards Program Agreement says benefits you receive by redeeming points may be reportable by PayPal and taxable income to you, and PayPal may ask for your SSN or TIN. It does not state a Form 1099 threshold. Donations made with points are not tax-deductible.
Honey vs Capital One Shopping?
Both are free coupon extensions that pay rewards at stores where you activate them. Honey pays cash to PayPal but points expire without activity; <a href="/cashback-apps/capital-one-shopping/">Capital One Shopping</a> pays e-gift cards only ($5.00 minimum), and unused rewards do not expire while the account is open.
How we researched this review
We did not get paid or receive anything for this page. We read Honey's terms of service, help center, privacy policy and app pages, and court records where a lawsuit is listed, on October 20, 2026. Each fact is quoted from those pages and linked below. We did not run a long-term hands-on test, so we do not score the app or estimate what you will earn; earnings depend on the offers in your area and what you buy. Where a point rests on what the company says, we attribute it to Honey. We re-check cash-out rules and fees about once a month and log changes in the table above.
Sources
- PayPal, PayPal Rewards Program Agreement (last updated March 17, 2025), checked October 20, 2026.
- PayPal Honey, US Terms of Use (last updated January 16, 2024), checked October 20, 2026.
- PayPal Honey, US Privacy Policy (last updated October 1, 2025), checked October 20, 2026.
- Honey help, What is the Honey extension and how do I get it?, checked October 20, 2026.
- Honey help, What are PayPal Rewards?, checked October 20, 2026.
- Honey help, Redeem PayPal Rewards for gift cards, checked October 20, 2026.
- Honey help, Pending PayPal Rewards, checked October 20, 2026.
- Honey help, Missing PayPal Rewards, checked October 20, 2026.
- Honey help, How do I install Honey?, checked October 20, 2026.
- Honey help, How does Honey make money?, checked October 20, 2026.
- Honey help, How do I delete my Honey account?, checked October 20, 2026.
- Chrome Web Store, PayPal Honey: Automated Coupons & Rewards (read October 20, 2026), checked October 20, 2026.
- PayPal newsroom, PayPal Completes Acquisition of Honey (January 6, 2020), checked October 20, 2026.
- PayPal newsroom, Honey adds cash back through PayPal (October 5, 2021), checked October 20, 2026.
- PayPal newsroom, PayPal Rewards launch (October 17, 2022), checked October 20, 2026.
- Chrome for Developers, Chrome Web Store affiliate ads policy update (2025), checked October 20, 2026.
- CourtListener, In re PayPal Honey Browser Extension Litigation, No. 5:24-cv-09470-BLF (N.D. Cal.), docket, checked October 20, 2026.
- N.D. Cal., In re PayPal Honey Browser Extension Litigation, order (docket 277), checked October 20, 2026.
- N.D. Cal., Campbell v. Honey Science, LLC, No. 5:25-cv-02850-PCP (docket 98), checked October 20, 2026.
- N.D. Cal., White v. PayPal Holdings, No. 5:25-cv-04884-PCP (docket 74), checked October 20, 2026.
This review is general information, not financial advice. Cashback offers, minimums and fees can change at any time; the app shows the current terms before you redeem.