The President and CEO of PayPal, Dan Schulman, has said that digital wallets are the focus of the digital payments firm’s future growth.
During the company’s quarterly earning call the CEO said, “We need to double down on the digital wallet.”
Schulman quoted several statistics to support this announcement. He said that more than 50% of PayPal’s clientele use the company’s digital wallet. Also customers who use digital wallets spend 25% more at checkout than those who don’t.
“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,” continued Schulman.
Further more than 70% of the ‘buy now pay later’ users do it through the company’s digital wallet. What is also considerable is that the digital wallet’s churn rate, that is the rate at which customers stop using a service, is 25% less than the rest of PayPal’s customer base.
Schulman also said, “Across both PayPal and Venmo, we are working hard to have our digital wallets at the center of our consumers’ daily financial lives.”
PayPal has been steadily moving towards greater crypto adoption for the company. In February of this year, the company formed an advisory council to help the company develop a digital financial system.
Recently, PayPal faced the heat for its crypto segment when Ark Invest founder Cathie Wood bashed the company over its lack of originality and crypto promotion. Cathie Wood dumped all of Ark Invest’s PayPal shares and instead showed interest and confidence in PayPal’s competitor CashApp.
