During the company’s quarterly results call on Wednesday, PayPal’s CEO emphasized that digital wallets will be critical to the company’s future growth.
“We need to double down on the digital wallet” president and CEO Dan Schulman said during the call. “We believe that is where the future of the industry is going, it’s the future of PayPal, it is the heart of what we’re trying to do from an engagement perspective.”
The rationale, according to Schulman, is that more than half of PayPal’s customer base uses the company’s digital wallet, that customers who use the digital wallet transact 25% more at checkout than those who don’t, and that more than 70% of buy now pay later (BNPL) users used the company’s digital wallet.
Furthermore, according to Schulman, the digital wallet’s churn rate, or the percentage of consumers who discontinue using a service, is 25% lower than the rest of PayPal’s client base.
“Across both PayPal and Venmo, we are working hard to have our digital wallets at the center of our consumers’ daily financial lives,” Schulman said.
PayPal announced in January that it is looking into creating a stablecoin
Stablecoin which is a cryptocurrency that is tethered to a country’s currency, such as the US dollar.
PayPal stated Wednesday that it earned $6.5 billion in net revenue and added 2.4 new accounts in the first quarter of 2022, in addition to its data on digital wallet usage.
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