PayPal puts digital wallets at the forefront of the company’s future growth
PayPal’s CEO emphasized on the company’s quarterly earnings call on Wednesday that digital wallets will play a key role in the future growth of the digital payments company.
“We need to double down on the digital wallet,” PayPal President and CEO Dan Schulman said on the call. “We think that’s where the future of the industry is, that’s the future of PayPal, that’s the core of what we’re trying to do from an engagement perspective.
Schulman cited several statistics as justification: over 50% of PayPal’s base uses the company’s digital wallet, customers who use the digital wallet perform 25% more transactions at checkout than users who don’t not, and more than 70% of buyers pay later. (BNPL) users did so through the company’s digital wallet.
Additionally, according to Schulman, the digital wallet’s churn rate, or the rate at which customers stop using a given service, is 25% lower than that of the rest of PayPal’s customer base.
“Through PayPal and Venmo, we are working hard to put our digital wallets at the center of our consumers’ everyday financial lives,” Schulman said.
In January of this year, PayPal confirmed that it was also actively exploring a stablecoinor a cryptocurrency tied to a country’s currency like the US dollar.
Along with its digital wallet usage data, PayPal on Wednesday reported generating $6.5 billion in net revenue and adding 2.4 million new accounts in the first fiscal quarter of 2022.