Can Paypal Reach its One Billion Account Aspiration with its Plans?
The power of modern technology and the digital wallets
Have you heard of a digital wallet? I'm sure you did because it has taken the world by storm since it became prevalent in today's modern age. Digital wallets have changed the way people do transactions. What a great time to be alive for people when payments can be made with just a mobile application, right? These wallets can also hold several things such as gift cards, tickets, driver's licenses, and transportation passes. If you've ever heard of them, let's talk about one of the most used digital wallets, which is Paypal.
All about Paypal Holdings Inc.
Paypal Holdings Inc. operates a system of online payments where an individual can make online money transfers. Electronic money serves as an alternative for traditional paper money methods such as checks and money orders. Paypal can be a mode of payment for online shops and other commercial users. However, they charge fees for the benefits it brings, like easy transactions and password memory. Paypal's first establishment is in 1998 as Confinity, with an initial public offering in 2002.
CEO Dan Schulman's one billion account goal
CEO Dan Schulman aspires for one billion daily users for Paypal. But aspirations are only aspirations if there is no action. Paypal's year is having a good start since they've garnered about 37 million new accounts. These additions made Paypal's total users around 305 million. However, this is nowhere near 1 billion; it isn't even half! But Schulman and his executive team have something better in mind to make this aspiration a reality.
Through and through efforts
Albeit the 67.4 million customer increase and the 5.3 million merchant increase in 2020, Paypal didn't lay back and go with the flow. They wanted to improve. They looked through and through what is the latest consumer behavior and applied it in their digital wallet. Let's list down these improvements that gave Paypal more engagement, payment, and retention:
⦁ QR codes and in-store payments. Paypal and Venmo introduced these since people avoided handling money or even credit cards due to the pandemic.
⦁ NFC or near field payments. This payment is possible through smartphones and cards.
⦁ Buy now, pay later service.
⦁ Cryptocurrency trading
Paypal as a super app in the future
Yes, you've read it right; Paypal's goal is to become a super app. But how are they planning to execute this goal? CEO Schulman is looking at high-yield savings account and stock investments. So what are the plans? First is expanding the bill payment services. The next is advancing the digital currency utility — both the decentralized and central bank digital currencies. Also, they are planning about budgeting tools in the app. It doesn't end there when they also want to make the most out of their 2019 Honey acquisition for shopping features where users can create a wish list that notifies them when their desired item is available within their budget. Also, Schulman said that contextual commerce uses the user's data to present offers that might spike their interests. With all these plans, we are somehow able to agree that PayPal may not only be a super app, but it might just hit its 1 billion account goal shortly.
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