Paypal Holdings Inc (NASDAQ:PYPL) expects that the number of active users on its platform will reach 700 million by the year 2025 by venturing into new financial areas. The payments giant plans a foray into high-yield savings accounts to boost revenues. It also plans to experiment with stock trading with its hands to further improve revenues.
Ambitious to become a financial super app
Dan Schulman, CEO of Paypal is ambitious to make Paypal the next financial super app in the world just akin to WeChat Pay and Alipay, the China-based payment apps. He further said very few companies worldwide have the vision to reach this goal. They need capabilities to cross from technology to shopping to financial services and payments.
Spending on the Paypal platform soars
With several people working from home because of ongoing coronavirus, the demand for online payments surged several times. It helped the payments giant to report revenues of $21.5 billion because consumers improved their spending online by 31%. Paypal improved its user base by 72.7 million during the year.
Outshines the rivals
It is the speed at which its processing mechanisms work to keep Paypal in the driver’s seat outshining other payment rivals like MasterCard Inc and Visa Inc. The company also withered the competition from Apple Inc. According to a survey conducted by Pymnts last year, Paypal’s Checkout button added three-quarters of the leading retail sites in the US and maintains a dominant position.
Sets an eye on becoming a one-stop shop
Paypal is setting an eye to becoming a one-stop-shop for both merchants and consumers alike. Its product line now comprises bill payments, high-yield savings accounts, check-cashing services, and stock trading. It will incorporate changes to its digital wallet to provide shopping and payments in separate tabs. Schulman said the company also yearns to add innovative features soon to its financial services.
In an interview after the investor day event, Schulman said the company is putting a lot of organic efforts using its product capabilities and platform to grow revenues. The payments giant is also scouting for acquisitions to improve its product line and boost earnings.
Paypal is already reaping rich rewards through its recent launch of facilitating the sale and purchase of cryptocurrencies by individuals.