PayPal-owned app loses 7M users after YouTuber exposed shocking allegations in viral video
A YouTuber launched an investigation into a popular discounts app and, after the clips went viral, the platform is now losing millions of users.
Many YouTube fans will be familiar with Honey, an app that a lot of high profile content creators advertised in their videos.
Honey claims to save users money by automatically searching for coupons when the user is at an online checkout, and is implemented through a browser extension.
Does it seem too good to be good? One YouTuber by the name of MegaLag believed so, and launched an investigation back in 2024 to look into the platform, which is owned by PayPal.
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Following up with a part two at the end of last year, the creator revealed PayPal had sent him a cease and desist for his allegations.
The YouTuber alleged that Honey profits through promotions by content creators and influencers, with users clicking affiliate links from creators to buy products.
However, when this happens, Honey allegedly changes the affiliate information to benefit directly from the commission.
This has led to lawsuits from creators towards PayPal over Honey’s alleged affiliate practices.
In a recent update, MegaLag shared that Honey has now been removed from various partnerships and affiliate access.
The creator also claimed that since his videos, Honey had lost a whopping seven million users from Chrome.
Earlier this year, a spokesperson for PayPal shared a statement with Hello Partner, saying: “PayPal and Rakuten are longstanding partners. We are aware of the actions taken regarding PayPal Honey and are working with them on a resolution.
“The code causing this behavior has been identified and no longer has an impact. The code was implemented prior to PayPal’s acquisition, and appears to affect less than 0.1% of Honey’s traffic.”
Many people have also taken to social media to share their own reactions to the drama, with one user writing on Reddit: “It's not just influencers. I run a blog where I review toys. I add affiliate links to help offset the cost of the website. If the user has Honey installed, Honey is basically stealing my commission. They did not produce the content that convinced the user to buy. They are using the "last click" loophole to cheat the system.”
Another said: “The fact that honey advertised itself as being “like free money” should’ve been the clue it’s a scam”
A third person added: “Nothing free is ever free.”