PayPal has set sights on becoming a one-stop-shop for consumers and merchants to conduct their finances, according to Bloomberg. The move is part of the firm’s ambitions to become the world’s next financial super-app like Alipay and WeChat Pay and diversify beyond the iconic checkout button.
- PayPal’s new products could include stock trading and high-yield savings accounts, bill-payment capabilities, and check-cashing services.
- PayPal’s new digital wallet will be divided into a financial services tab, payment tab, and a shopping tab as the company hopes to debut the new futures in the next two years.
- The payment giants project active users on its platform to rise to 750 million by the end of 2025, about double the current level.
- The news comes at the back of a record year for PayPal as spending on the platform soared 31%, and the firm added 72.7 million users in 2020, helping the revenue to rise to $21.5 billion.
- Although PayPal’s online checkout business dominates the industry, it faces intense competition from Apple Inc, Visa Inc., and Mastercard Inc.
- PayPal is also leaning from the success of its recently launched service that allows users to buy, sell, and hold cryptocurrencies in digital wallets.
- The company is now on track to more than double its revenue to $50 billion in 2025 as payments volume soars to $2.8 trillion.
- PayPal’s new initiatives caused a rise in spending on technology and development as such costs rose 27% to $2.64 billion last year.
PayPal stock is currently gaining. PYPL: NASDAQ is up 2.90% on the premarket.