PayPal Sales Intelligence Blog

PayPal Holdings, Inc.

2211 North First Street
San Jose, CA 95131
United States
408-967-1000
http://www.paypal.com

 

PayPal Blog Highlights

PayPal Holdings, Inc. (NASDAQ: PYPL) is ranked #182 on the 2020 Fortune 500 list

  • PayPal introduces interest-free buy-now-pay-later product
  • PayPal Enters Installment Loan Business Targeting Fintechs Affirm And Afterpay
  • The pandemic has made PayPal ‘more relevant’ than ever before, CEO says

PayPal Social Media properties


Facebook: https://www.facebook.com/PayPalUSA
Instagram: https://www.instagram.com/paypal/
LinkedIn: https://www.linkedin.com/company/paypal/
Twitter: https://twitter.com/PayPal
YouTube: https://www.youtube.com/user/PayPal

 

PayPal Sales Trigger Events

PayPal launches installment payment plans
SVP of Global Credit at PayPal, Doug Bland explained in a press release how Pay in 4 can help drive orders for merchants without forcing them to take on any additional costs, saying: "In today's challenging retail and economic environment, merchants are looking for trusted ways to help drive average order values and conversion, without taking on additional costs. At the same time, consumers are looking for more flexible and responsible ways to pay, especially online. With Pay in 4, we're building on our history as the originator in the buy now, pay later space, coupled with PayPal's trust and ubiquity, to enable a responsible and flexible way for consumers to shop while providing merchants with a tool that helps drive sales, loyalty and customer choice."
Pay in 4 will be available to PayPal users on qualifying purchases beginning in early Q4 of this year and the service's launch date lines up nicely with the 2020 holiday season.
Source


PayPal integration bridges fiat-crypto gap for bitFlyer Europe users
bitFlyer Europe users will now be able to directly deposit euros to their wallet to trade cryptocurrencies, bitFlyer Europe business strategy manager Jacek Bastin told Cointelegraph. He said, “bitFlyer charges no handling or processing costs on top of the fees charged by PayPal.”
As PayPal has a worldwide user base of more than 340 million and handles almost 35% of all eCommerce transactions in Europe, it may expose a wide number of European netizens to bitFlyer exchange and also cryptocurrencies in general.
Source

 

PayPal Expands The PayPal Business MasterCard® Debit Card In Europe
Oct 1, 2020
Businesses to receive 0.5% for spending
The card makes it easier for businesses to spend their PayPal funds, and they receive an unlimited cashback of 0.5%. Small businesses can access their PayPal funds and spend in the over 52 million merchant locations across the globe that accepts MasterCard. PayPal is making the debit card available in five more European countries: Ireland, Italy, France, Austria, and Spain. Currently, the PayPal Business Debit MasterCard is available in the UK and Germany in Europe plus the US.
Source


PayPal’s Rainey: CFOs Must Focus On Customers (Not Just Cash Flow) Amid Great Digital Shift
Sep 24, 2020
John Rainey, chief financial officer and executive vice president of global customer operations at PayPal, noted that CFOs (including himself) have learned to pivot, too, with ground-level, tech-driven insights that move well beyond simply tracking money flows.
To do so they must take the long-term view while being mindful of the intersection and interdependencies between finance, operations and the customer experience — along the way finding new methods to measure and address pain points.
“CFOs get typecast more than other executives as being just debit- and credit-oriented,” Rainey told Webster. “That may have been true some period of time ago; I think it’s very different today.”
Source

Private cloud networking creates public cloud UX on premises
Sep 30, 2020
Organizations can run a private cloud like a public cloud with the help of the right networking and security tools and achieve agility and flexibility on premises.
The public cloud offers agility in networking and security that traditional methods often lack. However, organizations can adopt certain strategies and technologies to achieve a similar level of flexibility in their private clouds, such as full stack networks and rapid security policies with few to no hardware dependencies.
NSX Advanced Load Balancer separates the control plane from the data plane. The controller -- a single REST API housing the system policies -- manages the lifecycle of the data plane and its service engines. The feature set remains the same across all environments, including bare metal, VMs and containers.
"[It] gave us the ability to take a closer look at our application flows. It's helped reduce troubleshooting times and it's also helped provide accountability to the application owners, so if an application's misbehaving, it's a lot easier to find it," said session guest Chad Kotil, senior systems engineer for Paypal.
Source


Executive interview: Sri Shivananda, chief technology officer, PayPal
Aug 16, 2020
Architecturally speaking, Shivananda says:”Each of the workloads that function customers are organised into tiers.” There is a front-end tier, a web application programming interface grade, and a grade of providers that call.
Shivananda says that like other complicated architectures, PayPal’s IT is redundant, organised into multiple areas and is resilient to failure. It’s broken up into domain names and services, and there are currently covering areas like charge and compliance. The services are constructed as microservices, which interact with middleware.
Read the full interview

 

Download the PayPal TURBO Report to see dozens more actionable sales trigger events.

PayPal Earnings Call Highlights

July 29, 2020

Executives In Attendance

Analysts in Attendance

  • Tien-Tsin Huang - JPMorgan Chase & Co.
  • Heath Terry - Goldman Sachs Group
  • Lisa Ellis - MoffettNathanson
  • Darrin Peller - Wolfe Research
  • Bob Napoli - William Blair & Company
  • David Togut - Evercore ISI
  • James Faucette - Morgan Stanley

 

    • PayPal is expanding functionality beyond omni checkout in both PayPal and Venmo digital wallets. The company will roll out additional services over the next several quarters, including bill pay, subscriptions and rewards management, shopping tools from Honey and new forms of credit and budgeting tools, to name just a few. PayPal's goal is to meaningfully expand the range of services provided inside wallets.
    • PayPal recently entered into an important commercial relationship with Gojek, a leader in mobile commerce in Southeast Asia with 170 million users. In Brazil and Mexico, PayPal is available as a payment option in the Mercado Pago online checkout for shoppers. And PayPal is now available for cross-border transactions on MercadoLibre. And the company continues to build an executive team and capabilities in China as the company integrates with the GoPay platform, partnering with China UnionPay and other leading Chinese players.
    • PayPal's second-quarter performance highlights the benefits of PayPal's diversification and scale and resulting earnings power. The company delivered 25% revenue growth on a currency-neutral basis, 49% growth in non-GAAP earnings per share and generated $2.2 billion in free cash flow. 
    • Revenue in the second quarter increased 25% on a currency-neutral basis to $5.26 billion. Transaction revenue grew 30% on a currency-neutral basis, the strongest growth the company ever reported. Growth accelerated 13 points year-over-year and 15 points sequentially. Transaction revenue growth was primarily driven by strength across PayPal Checkout experiences, which more than offset the approximately 60% decline the company saw within travel and advanced volumes. For context, travel and events represented slightly more than 10% of TPV in the second quarter last year. In addition, cross-border volumes increased 24% in the quarter, which also supported transaction revenue growth. Other value-added services revenue declined 26%.

    PayPal Q2 2020 Earnings Call on July 29, 2020: https://seekingalpha.com/article/4362118-paypal-holdings-inc-pypl-ceo-daniel-schulman-on-q2-2020-results-earnings-call-transcript?part=single

     

    PayPal Executive Leadership

    NAME TITLE
    Dan Schulman President and CEO, PayPal
    Mark Britto EVP, Chief Product Officer
    John Rainey CFO and EVP, Global Customer Operations
    Louise Pentland EVP, Chief Business Affairs and Legal Officer
    Jonathan Auerbach EVP, Chief Strategy, Growth and Data Officer
    Peggy Alford EVP, Global Sales
    Aaron Karczmer Chief Risk Officer and EVP, Risk and Platforms
    Sri Shivananda SVP, Chief Technology Officer
    Franz Paasche SVP, Corporate Affairs
    Gabrielle Rabinovitch VP, Investor Relations
    PayPal Executive Leadership

    PayPal Board of Directors

    NAME TITLE COMPANY
    Rodney C. Adkins President 3RAM Group LLC
    Jonathan Christodoro Partner Patriot Global Management, LP
    John J. Donahoe President and CEO Nike, Inc.
    David W. Dorman  Non-Executive Chairman of the Board CVS Health
    Belinda J. Johnson Chief Operating Officer Airbnb, Inc
    Gail J. McGovern President and CEO American Red Cross
    Deborah M. Messemer Retired Major Market Managing Partner KPMG
    David M. Moffett Retired CEO Federal Home Loan Mortgage Corp
    Ann M. Sarnoff Chair and CEO Warner Bros. Entertainment
    Daniel H. Schulman President and CEO PayPal Holdings, Inc
    Frank D. Yeary Manager Darwin Capital Advisors, LLC

     

    PayPal Annual Report Highlights

    PayPal 2019 Annual Report filed for Fiscal Year-End December 31, 2019

    PayPal Holdings, Inc. was incorporated in Delaware in January 2015 and is a leading technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. PayPal combined payment solutions, including PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products and services, comprise the company's proprietary Payments Platform.

    PayPal operates a global, two-sided network at scale that connects merchants and consumers with 305 million active accounts (consisting of 281 million consumer active accounts and 24 million merchant active accounts) across more than 200 markets.

     PayPal Financial Metrics

     

    PayPal Financial Highlights

    Fiscal Year
    Fiscal Year Ends December 31, 2020
    Most Recent Quarter  June 30, 2020
    Profitability
    Profit Margin 13.44%
    Operating Margin  15.16%
    Management Effectiveness
    Return on Assets  3.27%
    Return on Equity  15.27%
    Income Statement
    Revenue  $19.22 Billion
    Revenue Per Share  16.37
    Quarterly Revenue Growth  22.20%
    Gross Profit  7.99B
    EBITDA 3.66B
    Net Income Avi to Common  2.58B
    Diluted EPS  2.18
    Quarterly Earnings Growth  85.90%
    Balance Sheet
    Total Cash  13.05B
    Total Cash Per Share  11.12
    Total Debt  9.67B
    Total Debt/Equity  54.71
    Current Ratio  1.38
    Book Value Per Share  15.04
    Cash Flow Statement
    Operating Cash Flow  6.25B
    Levered Free Cash Flow  4.06B

     

    PayPal Business Strategy

    The company's strategy to drive growth includes the following:

    • Growing core business: through expanding global capabilities, customer base and scale, increasing customers’ use of products and services by better addressing their everyday needs related to accessing, managing, and moving money, and expanding the adoption of solutions by merchants and consumers;
    • Expanding value proposition for merchants and consumers: by being technology and platform agnostic, partnering with merchants to grow and expand their business online and in-store; and providing consumers with simple, secure, and flexible ways to manage and move money across different markets, merchants, and platforms;
    • Forming strategic partnerships: by building new strategic partnerships to provide better experiences for customers, offering greater choice and flexibility, acquiring new customers, and reinforcing role in the ecosystem; and
    • Seeking new areas of growth: organically and through acquisitions and strategic investments in existing and new international markets around the world and focusing on innovation both in the digital and physical world. 

     

    PayPal Strengths

    PayPal's business is built on a strong foundation designed to drive growth and differentiate from competitors. The company's competitive strengths include the following:

    • Two-sided Platform— the platform connecting merchants and consumers enables PayPal to offer unique end-to-end product experiences while gaining valuable insights into customer behavior through data. The platform provides for digital, mobile, and in-store transactions while being both technology and platform agnostic.
    • Scale— the global scale allows PayPal to drive organic growth. As of December 31, 2019, the company had 305 million active accounts, consisting of 281 million consumer active accounts and 24 million merchant active accounts in more than 200 markets around the world. In 2019, PayPal processed $712 billion of TPV.
    • Brands—PayPal has built well-recognized and trusted brands. Marketing efforts across multiple demographic groups play an important role in building brand visibility, usage, and overall preference among customers.
    • Risk Management— The risk management system and use of tokenization are designed to help keep customer information secure, and to help ensure. The company processes legitimate transactions around the world, while identifying and minimizing illegal, high-risk, or fraudulent transactions.
    • Regulatory— PayPal believes that regulatory licenses, which enable the company to operate in markets around the world, are a distinct advantage and help support business growth.

    See the Full PayPal 2019 Annual Report

     

    PayPal 2019 Global Impact Report Highlights

    BUSINESS STRATEGY
    In 2019, the continued to expand and deepen two-sided network. By year end, the company added 37 million net new active accounts. PayPal also launched strategic relationships with some of the world’s largest marketplaces and platforms, such as Instagram, Uber, and MercadoLibre, and further invested in products and services like Venmo and Xoom. The company also completed the acquisition of GoPay, becoming the first foreign payments platform licensed to provide online payment services in China and began integrating iZettle throughout our operations.
     

    PayPal Stats Infographic

      

      

    PayPal Org Charts

    PayPal Board of Directors Org Chart 

     PayPal Executive Leadership Org Chart

    Download the PayPal TURBO Report to see dozens more PayPal org charts featuring decision makers in Technology, Finance, HR, and Marketing.

    More on PayPal


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