eastunder
7 months ago
PayPal Announces New Leaders to Build New Advertising Platform and Accelerate Consumer Product Innovation
NEWS PROVIDED BY
PayPal Holdings, Inc.
May 28, 2024, 08:00 ET
https://www.prnewswire.com/news-releases/paypal-announces-new-leaders-to-build-new-advertising-platform-and-accelerate-consumer-product-innovation-302156174.html
SAN JOSE, Calif., May 28, 2024 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced new leadership appointments that will drive the creation of a new advertising platform and strengthen the company's consumer value proposition. Mark Grether will join on May 28 as SVP, General Manager, PayPal Ads, and John Anderson has joined as SVP, General Manager, Consumer Group. Grether and Anderson will report to Diego Scotti, EVP, General Manager, Consumer Group and Global Marketing & Communications.
Advertising Platform
PayPal's long-standing relationships with millions of consumers and merchants make the company uniquely positioned to create an advertising platform that is rooted in commerce. Grether will join the company to build an advertising business that will help make merchants smarter to sell more products and services effectively, as well as enable consumers to discover more of what they love. The advertising business, which will include PayPal advanced offers platform, will use customer insights to build a dynamic, truly personalized platform that will drive better advertising spend performance for merchants while delighting consumers with compelling offers.
Grether has been a leader in the advertising industry for more than 20 years. He joins PayPal from Uber, where he was the Vice President, General Manager of Uber Advertising. Under his leadership, Uber Advertising grew to a $1 billion business with more than 500,000 advertisers globally. He successfully led the acceleration of the company's global advertising business, helping merchants, brands, and other advertisers reach Uber's highly engaged user base across its Mobility and Delivery divisions. Prior to Uber, Grether led the product strategy for Amazon's advertising business, and he served as CEO of Sizmek, one of the largest independent advertising platforms globally, which was sold to Amazon in 2019. Prior to Sizmek, Mark was the co-founder and global COO of WPP's Xaxis, which became a leading programmatic media company.
"Commerce and advertising are deeply connected, and we believe that the advertising platform we are building at PayPal will become a must-use marketing channel for merchants big and small. I'm thrilled to have Mark join our team and lead this important work," said Scotti.
Consumer Business
Anderson has spent over 20 years at the intersection of technology platforms and payments. He will be accountable for PayPal's consumer business, including product strategy for PayPal and Venmo globally. Anderson joins PayPal from Plaid, where he was Head of Product and Payments and oversaw significant growth of Plaid's payment product suite. Prior to Plaid, John spent a decade at Meta in numerous product and leadership roles, including Head of Product for Oculus, Head of Facebook Japan, and Head of product and operations teams for Payments, Commerce, and Risk. Prior to joining Meta, John founded GroupCard, a social greeting and payments platform that was acquired by InComm.
"John brings strong experience in developing groundbreaking, personalized consumer experiences to PayPal, which will drive relevance of our brands, fuel our innovation pipeline, and give more reasons for consumers and merchants to choose PayPal," said Scotti.
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalized, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.
eastunder
9 months ago
Tap to Pay on iPhone Now Available for Venmo and PayPal Zettle Businesses in the U.S.
https://www.prnewswire.com/news-releases/tap-to-pay-on-iphone-now-available-for-venmo-and-paypal-zettle-businesses-in-the-us-302082615.html
PayPal Holdings, Inc.
07 Mar, 2024, 10:00 ET
Tap to Pay on iPhone is now live for all Venmo business profile and PayPal Zettle users in the U.S.
SAN JOSE, Calif., March 7, 2024 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced that Tap to Pay on iPhone is now available for all Venmo business profile and PayPal Zettle users in the U.S., enabling them to accept contactless card and digital wallet payments directly on their iPhones with no additional cost or hardware. This is the latest development in PayPal's ongoing efforts to help small businesses sell more, grow their business, and manage their finances more efficiently.
Consumers are increasingly going cashless. More than 40 percent of Americans surveyed say that none of their purchases are made with cash in a typical week, and that trend is expected to continue. As a result, accepting card and digital wallet payments in person is increasingly table stakes for small businesses, but until recently, businesses have had to purchase and manage card readers to do so. With Tap to Pay on iPhone, PayPal is helping millions of small businesses adapt to this shift in consumer behavior in a fast, easy, and more affordable way.
"As consumers increasingly turn to non-cash options to pay, small businesses are looking for affordable and flexible ways to offer their customers more payment choice without being tied down to a fixed location," said Nitin Prabhu, VP, Small Business & Financial Services, PayPal. "With Tap to Pay on iPhone, millions of small businesses that use Venmo and PayPal Zettle can now start accepting contactless card and digital wallet payments nearly anywhere, directly on their iPhones, which can expand their customer base and drive incremental sales."
With Tap to Pay on iPhone, Venmo business profile and PayPal Zettle users in the U.S. can get set up in minutes and begin securely accepting contactless cards and digital wallets directly on their iPhones. They can also add taxes, accept tips, send receipts, and issue refunds. In addition, funds from sales will settle quickly into a business's Venmo or PayPal Zettle account, helping to streamline operations and manage cash flow.
Tap to Pay on iPhone will also enable Venmo business profile users to dramatically expand their customer base and accept payments from buyers even if the buyer doesn't have a Venmo account. They can also manage both their Venmo and card payment transactions directly within the Venmo app.
Venmo business profile and PayPal Zettle users like Saint Paul Spice Company and The Cheesecake Queen are already seeing success with Tap to Pay on iPhone.
"Enabling Tap to Pay on iPhone with our Venmo business profile was really easy, and my customers really love it because it's a quick and convenient way for them to pay," said Elaine Bailey, founder of The Cheesecake Queen based in Houston, Texas. "It's especially handy when I have a long line of customers and need to get payments processed quickly. The solution has made it so fast and simple to accept payments when I'm selling at popups and festivals, especially because a lot of my customers don't want to carry cash, and prefer to pay with a digital wallet like Venmo or with cards. My customers are actually amazed at the Tap to Pay on iPhone option provided through Venmo, it's by far the smoothest, easiest transaction method I've ever used!"
Small business owners can get set up in just a few simple steps and start accepting contactless cards and digital wallets through their Venmo business profile or through PayPal Zettle.*
eastunder
10 months ago
Decoding PayPal Holdings Inc (PYPL): A Strategic SWOT Insight
Thu, February 8, 2024 at 10:20 PM MST·4 min read
https://finance.yahoo.com/news/decoding-paypal-holdings-inc-pypl-052004372.html
PayPal's robust two-sided network connects millions of merchants and consumers globally.
Despite intense competition, PayPal maintains a strong brand and innovative payment solutions.
Opportunities for growth through strategic partnerships and expansion into new payment technologies.
Challenges include cybersecurity risks and evolving regulatory landscapes.
PayPal Holdings Inc (NASDAQ:PYPL), a leader in digital payment solutions, filed its 10-K report on February 8, 2024, revealing the company's financial performance and strategic positioning. With a focus on online transactions, PayPal boasts 435 million active accounts, including its popular Venmo platform. The company's financial tables highlight a solid foundation, with a total payment volume (TPV) showcasing the scale of its platform and the relevance of its services. As of June 30, 2023, PayPal's market capitalization stood at approximately $73.4 billion, reflecting investor confidence and market presence. This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats as disclosed in the recent 10-K filing, providing investors with a comprehensive view of PayPal's market position and future prospects.
Strengths
Global Two-Sided Network: PayPal's greatest strength lies in its expansive two-sided network, which seamlessly connects 426 million active accounts, including 391 million consumer and 35 million merchant accounts. This network facilitates a diverse range of transactions, contributing to a TPV that reflects the company's significant market penetration and customer engagement. PayPal's ability to offer unique end-to-end product experiences reduces friction for both merchants and consumers, enhancing the overall transaction experience.
Brand and Innovation: PayPal's brand is synonymous with secure and convenient digital payments. The company's ongoing investment in technology and innovation has solidified its position as a trusted payment brand globally. With a suite of proprietary payment solutions and a commitment to security, PayPal continues to attract and retain users, further strengthening its market position.
Financial Health: The financial tables in the 10-K filing underscore PayPal's robust financial health. With a disciplined approach to growth and profitability, the company has maintained a strong balance sheet, enabling it to invest in new technologies and expand its offerings. This financial stability is a testament to PayPal's operational efficiency and strategic foresight.
Weaknesses
Intense Competition: The payments industry is highly competitive and dynamic, with constant innovation and shifting consumer preferences. PayPal faces competition from traditional financial institutions, emerging fintech startups, and technology giants expanding into payments. To remain competitive, PayPal must continuously innovate and adapt to changing market conditions.
Regulatory Challenges: Operating in a global market exposes PayPal to a complex web of regulations that vary by jurisdiction. Compliance with these regulations can be costly and operationally challenging, potentially limiting the company's ability to expand in certain regions or requiring changes to its business practices.
Cybersecurity Risks: As a digital payment platform, PayPal is inherently exposed to cybersecurity threats. Despite a comprehensive cybersecurity program, the risk of breaches and data security incidents remains a concern that could impact customer trust and the company's reputation.
Opportunities
Strategic Partnerships: PayPal has the opportunity to grow its core business and expand its customer base through strategic partnerships. By collaborating with various stakeholders in the payments ecosystem, PayPal can offer enhanced experiences, acquire new customers, and reinforce its role as a leading payment provider.
Technological Advancements: The ongoing evolution of payment technologies presents opportunities for PayPal to innovate and offer new payment methods, such as contactless payments, tokenization, and cryptocurrency integrations. Staying at the forefront of these trends can help PayPal capture new market segments and drive growth.
Global Expansion: With a presence in approximately 200 markets, PayPal is well-positioned to capitalize on the global shift from cash to digital payments. Expanding into emerging markets and leveraging its scalable platform can lead to increased TPV and revenue growth.
Threats
Regulatory Scrutiny: The payments industry is subject to increasing regulatory scrutiny, which could lead to new compliance requirements and restrictions. Changes in regulations or enforcement actions could adversely affect PayPal's operations and financial performance.
Technological Disruption: Rapid technological changes and the emergence of disruptive payment solutions could threaten PayPal's market share. The company must remain agile and responsive to maintain its competitive edge in an industry characterized by constant innovation.
Economic Uncertainty: Macroeconomic factors, such as fluctuating consumer spending patterns and currency exchange rates, can impact PayPal's business. Economic downturns or unfavorable market conditions could lead to reduced transaction volumes and affect the company's profitability.
In conclusion, PayPal Holdings Inc (NASDAQ:PYPL) stands as a formidable player in the digital payments landscape, bolstered by its extensive two-sided network, strong brand, and financial stability. However, the company must navigate a competitive market, regulatory complexities, and cybersecurity risks. Opportunities for growth through strategic partnerships, technological advancements, and global expansion are countered by threats from regulatory changes, technological disruptions, and economic uncertainties. PayPal's forward-looking strategies, including a focus on innovation and strategic partnerships, position the company to leverage its strengths and address its weaknesses while capitalizing on market opportunities and mitigating potential threats.
eastunder
10 months ago
PYPL Stock Forecast: A PayPal Turnaround IS Coming. Just Not This Year.
PYPL just revealed things are going to take a bit longer than expected
By Rich Duprey, InvestorPlace Contributor
https://investorplace.com/2024/02/pypl-stock-forecast-a-paypal-turnaround-is-coming-just-not-this-year/
PayPal Holdings (PYPL) issued a solid earnings report but offered weaker-than-expected guidance.
While transaction volumes were higher, the payments platform continued to lose active users.
New investments in AI, payment service provision and a cash app debit card could lift the stock going forward.
What have you done for me lately? That’s the approach this PayPal Holdings (NASDAQ:PYPL) stock forecast will consider. The payments platform that just reported fourth-quarter earnings and saw its stock tank after hours. Despite a solid beat on revenue and earnings, the market sold off shares because of soft guidance and a decline in active accounts.
The ailing fintech stock was barely keeping its head above water but is now at a loss for the year. Is it really going to be another dismal year for PayPal investors after the 20% loss or so in 2023? Or does a PYPL stock forecast indicate now is the time to buy in for the coming rebound?
Weakness in the PYPL Stock Forecast
Investors are going to need to more patience for PayPal’s turnaround to happen. Management is putting the pieces in place to engineer a return to growth. It’s just taking longer than expected for it to gain traction.
PayPal saw total volumes rise 15% from last year to $410 million with transactions up 13%. Payment transactions per active account also rose 14% on a trailing 12-month basis. Yet the number of active accounts declined 2% to 426 million. Essentially PayPal is getting users to do more with its service though it has less of them.
That led revenue to rise 9% to $8 billion handily, topping consensus estimates of $7.87 million. Adjusted earnings jumped 19%, rising to $1.48 per share, also beating Wall Street forecasts of $1.36 per share.
PayPal recently announced it was firing 9% of its workforce to help contain costs. The management plans to invest in other areas to help ignite growth. It’s good that PayPal is looking down the road instead of trying to please Wall Street here and now, but it means the turnaround is more difficult than believed and will take time to achieve.
Jumping on the AI bandwagon
PayPal continues to explore new opportunities. Last month it launched six new artificial intelligence (AI) enhancements to efficiently improve the checkout experience while also providing new discovery tools for merchants and consumers.
Although they appear derivative of what you can find elsewhere, it may help bring users back for more. Think of it as a necessary progression instead of a trailblazing development.
The payments platform is also investing more in Braintree, PayPal’s payments service provider. PSPs manage online payments for merchants, moving the money from the customer through the bank and into the business’s account.
Braintree authorization rates improved 240 basis points in Q4 and PayPal says it gained market share and greater merchant approval. Much of the transaction growth PayPal saw in the quarter was because of Braintree.
It is also expanding the reach with its Venmo cash app with the launch of a Venmo debit card. It notes cardholders are among its most-engaged users, with 6% of active Venmo users having a card. That suggests there is plenty of room for greater adoption.
Patience with PYPL
So should an investor buy now? PYPL stock looks undervalued. It trades at just 19 times earnings and 10 times estimates. PayPal has never traded at such low valuations in its entire time as a publicly traded company. The same goes for its price-to-sales ratio. It’s as low as it’s ever been.
Competition is fierce in payments, which pressures margins, but PayPal possesses a large platform trusted by both merchants and consumers. Unfortunately, it’s fairly limited to the e-commerce space which narrows its field of opportunity.
That’s why both Venmo and Braintree are where its growth potential lies. The launch of AI tools also bodes well for the future, even if they’re not any groundbreaking tools. It shows PayPal can adapt to new models. But I’ll take management at its word that we’re not likely to see much of a turnaround this year before things improve in 2025.
That’s why an investor could buy in now. Rarely does someone pick the perfect entry point and with the stock at a decent valuation and potential growth to come, picking up shares now and holding for the long term makes the most sense.
eastunder
10 months ago
PayPal's turnaround timeline catches investors off guard as company sees no FY24 EPS growth
12:47 PM ET, 02/08/2024 - Briefing.com
Rising competition in the payments space has taken a toll on fintech pioneer PayPal (PYPL), which has seen its revenue growth shrink to single digit levels in recent quarters as it loses share to companies like Apple (AAPL), Google (GOOG), and Affirm (AFRM). As such, expectations were muted heading into PYPL's Q4 earnings report with market participants focusing their attention on the future, looking for evidence that the turnaround plan from recently appointed CEO Alex Chriss is starting to take hold.
While PYPL comfortably exceeded those Q4 expectations with both EPS and revenue topping estimates, its weak guidance for FY24 indicated that a turnaround is going to take longer than anticipated. Specifically, the company said that it expects FY24 EPS to be about flat with FY23 at $5.10, falling well short of analysts' forecasts. This discouraging guidance caught investors off-guard, especially after PYPL announced a 9% workforce reduction in late January.Costs, though, do not seem to be the issue. In fact, in Q4, total operating expenses were up by just 3% yr/yr to $6.3 bln. Rather, the main problem for PYPL is that its payment platform has fallen behind the curve, losing traction with consumers and businesses. This is most clearly seen in the drop-off of branded transactions which are generated when consumers use the PayPal or Venmo app.These transactions are far more lucrative than unbranded transactions, or transactions that PYPL executes for businesses. A key metric that reflects this challenge is transaction margin dollars. In Q4, transaction margin dollars were flat on a yr/yr basis at $3.7 bln and PYPL doesn't see this improving much in FY24. During the earnings call, the company said that it expects transaction margin dollars to remain flat this year on a yr/yr basis.Adding salt to the wound, Mr. Chriss acknowledged that the product improvement initiatives he highlighted during his "First Look" presentation on January 25 are not likely to move the needle much in FY24. According to Mr. Chriss, the initial customer reaction to these product enhancements, including a faster checkout experience and an AI-powered recommendation tool called Smart Receipts, has been encouraging, but it will take time for them to contribute meaningfully to the financials.
The main takeaway is that PYPL's disappointing FY24 guidance offered a sobering reality check that there is no quick fix to the company's turnaround. Keeping a tight lid on costs and enhancing the platform's capabilities is a sound strategy, but the stock seems likely to be stuck in neutral until some tangible evidence emerges that stronger growth lies ahead.
eastunder
10 months ago
PayPal shares fall as 2024 forecast clouds promise of turning leaner, more profitable
https://finance.yahoo.com/news/paypal-shares-fall-2024-forecast-102416955.html
Thu, February 8, 2024 at 3:24 AM MST·2 min read
(Reuters) - PayPal shares fell nearly 9% in premarket trading on Thursday after it forecast a flat adjusted profit for 2024, disappointing investors who had hoped the payments firm's newly appointed CEO will reignite its growth.
On a post-earnings call, CEO Alex Chriss laid out a strategic plan to turn the company leaner in its pursuit towards profitable growth as well as ease pressure on its shares, which were one of the worst performers on the Nasdaq 100 Index in 2023.
Wall Street analysts said the outlook will weigh on shares in the near term but the new initiatives would likely bear fruit in time and benefit the company.
"It's clear that 2024 will be more of a transition year than we were expecting, with previously targeted operating leverage coming after 2024. We expect pressure on the stock as estimates come down," J.P.Morgan wrote in a note.
At current levels, if losses hold, the stock would lose roughly $6 billion in market value.
It trades at a forward price-to-earnings ratio - a widely-used benchmark for valuing stocks which compares its share price with projected future earnings - of 11.64, compared with rival Block's 21.08, according to LSEG data.
'MOVING THE NEEDLE'
"We're doing a lot of things to drive change internally and externally. However, nothing happens overnight. It will take time for some of our initiatives to scale and move the needle," said Chriss in a conference call.
Analysts at Morningstar said management's outlook suggests the road towards improving growth and profitability will be longer than expected.
"Management's commentary implied that PayPal won't see a meaningful improvement in either growth or margins this year," they added.
Paypal also said it will no longer provide an annual revenue forecast, a departure from regular practice and further clouding its outlook.
"Given the considerable changes underway at the company, we believe it is prudent to guide revenue one quarter ahead and provide updates as the year progresses," said Chief Financial Officer Jamie Miller.
eastunder
11 months ago
Payments firm PayPal to cut around 2,500 jobs
Reuters
https://finance.yahoo.com/news/payments-firm-paypal-cut-around-195622420.html
Tue, January 30, 2024 at 12:56 PM MST·1 min read
(Reuters) -Payments firm PayPal Holdings will cut about 2,500 jobs this year, Bloomberg News reported on Tuesday citing a letter from CEO Alex Chriss to staff that it reviewed.
In a letter to staff on Tuesday, Chriss said the decision was made to "right-size" the company through both direct cuts and the elimination of open roles throughout the year, according to the report.
The company did not immediately respond to a Reuters request for comment.
In November, newly appointed CEO Chriss said he expects to increase revenue outside of purely transaction-related volume and pledged to turn the fintech firm leaner by reducing its cost base.
Though the announcement helped rally the stock after third-quarter results, analysts have remained focused on PayPal's margins in recent quarters.
The company's low-margin business products have risen strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple
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