PayPal to expand digital wallet functionality
The digital wallet will play a key role in PayPal's growth. The company intends to strengthen this area, its CEO Dan Schulman said during a Q1 2022 conference call.
Fragmented parts of the economy are coming together, be it shopping, payments, basic financial services. The digital wallet will be one of the key elements of how we drive customer interaction. We will continue to develop it. Right now it is version 1.0. There will be versions 2.0 and 3.0. We have a number of targets in the roadmap that we really want to implement this year, he explained.
The top executive estimates that more than half of PayPal's users have installed the company's digital wallet. This category of customers makes 25% more transactions compared to those who do not belong to this category. More than 70% of those who have used the BNPL service have done so via digital wallet.
The company's abandonment rate (churn rate) in this category is 25% lower compared to the rest of PayPal's customer base.
Recall that in July 2021 PayPal announced the completion of development of a cryptocurrency wallet.
In January 2022, the company said it was exploring the possibility of issuing its own Stablecoin.
PayPal formed a cryptocurrency advisory board in February. In Shulman's vision, the future financial system will be an intersection of CBDC, stabelcoins, digital wallets and cryptocurrencies.
The company added the ability to buy/sell bitcoin for US users back in November 2020. In April 2021, PayPal-owned mobile payment service Venmo launched a similar service.