The digital payments company bought the California-based startup for an undisclosed sum as it looks to dip its toes further into e-commerce.

“Happy Returns has made astounding progress in our mission to make returns beautiful for shoppers, retailers, and the planet over the last six years. I’m proud of our team and excited for the future as part of PayPal,” co-founder David Sobie wrote in a post on LinkedIn Thursday.

Happy Returns was founded in 2015. It gives customers an in-person location for e-commerce returns. The company has over 2,500 drop-off centres, inside stores like Paper Source, Bed Bath and Beyond, World Market and many Simon malls. Brands that work with its returns program include Everlane, Rothy’s, American Giant, Revolve, Untuckit and Draper James.

Over ten percent of retail sales were returned last year, according to the National Retail Federation, as online shopping exploded during the pandemic. Returns are a major expense in e-commerce, as shoppers expect brands to cover the cost of free shipping and returns. Brands that have used Happy Returns have said they prefer to outsource reverse logistics to the company, and stores that host Happy Returns drop-off locations say the foot traffic helps their business.