How is PayPal doing business these days?

[caption id="attachment_5203" align="aligncenter" width="372"] How is PayPal doing business these days?[/caption]

PayPal, the world's largest online payment platform, took the market early. Thanks to this, we are ranked number 1 in market share in the US.

Elon Musk and Peter Thiel, who came from this company, are called the 'Paypal Mafia' and have a great influence all over Silicon Valley.

PayPal, the leader of the online payment platform, has a strong position.

We have faced many challenges over the past decade.

There are quite a few startups targeting the niche market of digital finance with innovative ideas. Technology companies such as Apple, Google, and Amazon are also targeting this market with mobile payment methods and physical cards.

Of course, PayPal seems to handle this challenge well.

The company left its parent company, eBay, in 2015 to survive.

Since then, there have been no breakthroughs in this company.

We are actively expanding our horizons through steady mergers and acquisitions, investment in startups, and participation in cryptocurrency projects.

It seems that PayPal's eyes need to be pointed at where it is headed. Today, I would like to take a look at the company's business status and future growth strategy after the spin-off.

Easy payment, P2P remittance... 5 core businesses of PayPal

PayPal's main services

[caption id="attachment_5204" align="aligncenter" width="300"] PayPal's main services[/caption]

PayPal's main services are as follows:

1) PayPal

Its main business is online remittance and a simple payment service.

In the beginning, it was aimed at eBay power sellers, but in 2004, through the merchant service, online commerce companies other than eBay were also able to use it.

Currently, you can pay with PayPal at 19 million online stores.

Individual customers can also donate through PayPal. In particular, for business customers, we are expanding our services to business support beyond payment alliances.

For example, business customers can also get loans such as business loans and working capital.

Among these, small business owners who are starting a new business are provided with the necessary tools through 'Business in a Box'.

2) Paypal Credit

It is a service that provides interest-free loans for 6 months for purchases of $99 or more to PayPal customers who have passed the application and approval process.

Its predecessor was Bill Me Raiter, which was acquired in 2007.

When you apply, you enter your date of birth, after-tax income, and social security number, and agree to the terms and conditions, and you can check whether or not you have been approved in just a few seconds.

Credit information is reviewed by Synchrony Bank. You can only apply if you have a PayPal account.

Later, when you pay with PayPal, you can choose PayPal Credit as a separate payment option.

The purpose of this service is to increase consumer participation and complement e-commerce.

Customers who apply for PayPal credit spend twice as much and trade more frequently than customers who don't.

3) Braintree

It is a service that handles online and mobile payments for e-commerce companies and startups.

Airbnb, Uber, and StubHub are customers.

In 2012, we acquired Venmo, a peer-to-peer remittance service, which we will discuss later. Just having Venmo, a new growth engine, PayPal's acquisition of Braintree was 'a godsend'.

It was acquired by PayPal in 2013, but the business is run independently.

In particular, in 2015, we developed a one-touch payment service that enables online purchases with one click.

With this service, if you enter your account information, you can pay immediately without logging in. This convenience grows quickly as a weapon.

4) Venmo

Venmo's characteristics are that it is very easy to use and has the characteristics of a social network.

For this reason, it is interpreted that millennials are enthusiastic.

Even if you do not know the account number of the other party, you can make a real-time transfer if your email address and mobile phone number are registered.

In particular, it is very convenient to make a Dutch payment,

That's why Uber added Venmo to its payment options.

You can also make payments through partnerships with merchants.

You can also share your payment history with your friends.

You can see what your friends have spent and comment on it. It is used as a social network because you can share your current situation with each other.

5) Zoom

It is also a money transfer service and was acquired by PayPal in 2015.

In addition to remittance, you can also recharge your phone bill or pay bills.

The special feature is that you can send money to more than 70 countries from the US and Canada.

As overseas remittance regions vary, there are also different remittance methods.

Basically, you can send money to any bank account or send money to a partner branch so the recipient can collect the money.

You can even have the money delivered to the recipient's home. If you don't get paid, the company will refund you.

PayPal's next growth strategy is also in Venmo, commerce

PayPal is not a bank, but its presence is no less than or even more than a bank.

Payment service, online account, bank account-credit card linkage, customer budgeting support, investment decision support, etc. are such means.

This helps to change the way banking is conceived and influences traditional banks to reshape their business and relationships with customers.

Since the 2010s, PayPal has been criticized for its mobile competitiveness and innovation level.

However, we strengthened our innovative DNA by actively transfusing competitive services through M&A.

This is still the driving force behind PayPal's double-digit growth rate.

In addition, if you look at the recently released services of the company, it is also noticeable that they are trying to upgrade the existing growth method based on e-commerce without abandoning it.

PayPal new marketing strategies

[caption id="attachment_5210" align="aligncenter" width="389"] PayPal new marketing strategies[/caption]

1) Venmo

PayPal's love for Venmo is extreme. It was mentioned the most (8 times) among the company's five major payment solutions in the annual report.
“It is growing as a key part of our business portfolio,” he explains.

The reason is that it is a P2P service loved by future customers, millennials.

According to mobile data company Zeotap, 50% of Venmo users are 25-34 years old, compared to 30% with PayPal.

In an interview with Bloomberg, PayPal CEO Dan Schulman compared the Venmo-Paypal relationship to an Instagram-Facebook relationship.

Facebook's acquisition of Instagram has been treated as a standard for Silicon Valley technology company M&A. PayPal's acquisition of Braintree and Venmo seems to be of such significance.

2) PayPal commerce platform

PayPal has been able to grow so far thanks to the growth of the e-commerce market.

Should we say that we share an ecosystem with each other? It is said that there was a time when PayPal was understood as a synonym for e-commerce.

E-commerce companies that use PayPal as a payment method, including eBay, need to do well to make PayPal payments. We need to work together to survive, not each one.

3) Strengthen overseas business

PayPal acquires Zettle, a Swedish fintech company called 'Square of Europe'.

Zettle is the world's first mini-chip card reader and software for mobile devices, which is acclaimed for revolutionizing mobile payments.

We are operating a commerce platform for small business owners in Europe and Latin America.

The acquisition of Izetle expands PayPal's business area as a comprehensive financial platform.

It also means targeting the small business payment market and offline retail market.

There is also the aspect of strengthening the foundation for overseas business. Zettle has entered 11 countries including Brazil, Denmark, Finland, and France.

4) Continue investment to expand the ecosystem

PayPal continues to make strategic investments to expand the payment ecosystem as well as M&A.

In April of this year, it announced that it would invest about $500 million in Uber.

We decided to invest in Uber's digital wallet project to collaborate.

I was very interested in Uber, which has evolved into an 'all-in-one sharing economy app' such as car calling and food delivery.

Earlier, in March, it invested about $750 million in Mercado Libre, an Argentine e-commerce company, 'eBay of Latin America'.

The company is similar to PayPal, including running its own payment system, Mercado Fargo.

For PayPal to maintain its dominance in the digital payment market, partnerships with well-known partners are essential.

This will help offset the long-term side effects when the payment partnership with eBay ends next year.