On Wednesday, PayPal CEO Dan Schulman emphasized on the company’s quarterly earnings call that digital wallets will play a key role in the digital payments company’s future growth. “We need to double down on digital wallets. We believe this is the future of this industry, the future of PayPal,” Schulman said.
Schulman cites several statistics as reasons: More than 50% of PayPal users use the company’s digital wallet, customers who use a digital wallet make 25% more transactions at checkout than users who don’t, and more than 70% of “buy now, later” Pay” users are done through the company’s digital wallet.
Also, according to Schulman, digital wallet churn, the rate at which customers stop using a service, is 25% lower than PayPal’s other customer base.
“At both PayPal and Venmo, we’re trying to make our digital wallets the center of our consumers’ everyday financial lives,” Schulman said.
In January, PayPal confirmed it was also actively exploring stablecoins, cryptocurrencies pegged to national currencies such as the U.S. dollar.
PayPal also released its first-quarter 2022 earnings report on Wednesday, reporting that the company’s total payments volume was $323 billion and transaction revenue totaled about $6.5 billion.
In addition, PayPal will close its San Francisco, Calif., office, which is home to its Xoom business unit, which PayPal acquired in 2015, which focuses on online money transfer technology and services, multiple sources said.
Since announcing that it will accept cryptocurrency payments in 2021, PayPal has entered the digital asset space by exploring the development of stablecoins. The company formed an advisory committee in February to support efforts related to crypto, blockchain and digital currencies.
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