PayPal buys returns start-up in latest move into the retail space

PayPal is making another acquisition in the e-commerce space as it moves beyond payments and into physical and online retail.

The digital payments giant announced a deal to acquire start-up Happy Returns on Thursday for an undisclosed amount. The 120-person Santa Monica-based company lets people return things they bought online, in person.

“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,” Frank Keller, senior vice president of consumer in-store and digital commerce at PayPal,…