PayPal Holdings Inc. is working on building a super app, encompassing payments, finance, crypto-currencies and shopping services all in one “personalised” app. Paypal reported a net profit of $1.6 billion in the first quarter of the current calendar year, up by 28% year-on-year, it said in its financial results.
“Over the coming year, we will accelerate our customers’ digital engagement through the rapid innovation of our digital wallet and merchant commerce platform,” said Dan Schulman, President and Chief Executive Officer, PayPal Holdings Inc during an earnings call.
“It will be an all-in-one personalized app that will empower our users to make the most of their money and strengthen their financial lives every day. We will provide increasingly customized and unique shopping, financial services, and payments experiences for our customers,” he told analysts.
Shulman explained that consumers are increasingly purchasing products and services from brands they trust, which is why they are pursuing a super app model. He said that PayPal consumers spend an average of 12% more at PayPal merchants and buy 11% more often when PayPal is accepted.
On Crypto-Currencies and CBDCs
PayPal has been an early mover towards the mainstream acceptance of crypto-currencie among established financial companies.
“We’ve got a tremendous amount of really great results going on tactically with our crypto efforts,” said Schulman. “There’s a lot of interesting things as you think about next-generation technology that can add utility to payments, that can take down perhaps cost, the elimination of unnecessary intermediaries and certainly can speed the time in which somebody can access their money,” he said.
Around half of PayPals’ crypto users open their app daily, which shows that crypto offerings actually have increased customer engagement, Schulman said. He added that the company is establishing a digital currency and blockchain business unit inside PayPal to ensure that the company is at the forefront of innovations in this area.
“W believe the current technological underpinnings of our financial system will be substantially upgraded over the coming years. Both cryptocurrencies and central bank-issued digital currencies can play a critical role in shaping a more inclusive recovery and a more equitable financial system,” Schulman said.
Last month, PayPal expanded its crypto services by enabling Venmo customers to buy/hold/sell crypto-currencies and also acquired Curv, an Israeli cloud-based digital asset infrastructure provider.