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- The CEO of PayPal highlighted that digital wallets would play a central role in the digital payment firm’s future growth.
- Dan Schulman, the president of PayPal, that digital wallets are the future of the industry and the future of PayPal.
- The team is working towards anchoring their digital wallets in the financial lives of their customers across both PayPal and Venmo.
On Wednesday, the CEO of PayPal highlighted during a quarterly earnings call that digital wallets would be playing an essential role in the future growth of the digital payment firm.
During the call, Dan Schulman, president and CEO of PayPal says there is a need to double the digital wallet. According to Schulman, it is where the industry’s future is leading; it is where the future of PayPal lies; “it is the heart of what we’re trying to do from an engagement perspective,” he adds.
Schulman quotes several citations from various sources: the digital wallet of the company is used by over 50% of the PayPal base users, 25% more customers who use a digital wallet do more checkout transactions than those who don’t, and more than 70% of buy now pay later (BNPL) users did it using digital wallet of the firm.
Besides, the churn rate of digital wallets is 25% less than the rest of the customer base of PayPal. The churn rate can be referred to as the rate at which customers stop using a particular service.
According to Schulman, the team is working day and night to center their digital wallets on the daily financial lives of their customers across both PayPal and Venmo.
PayPal admitted in January of this year that it is on active exploration of a stablecoin or a digital asset that is pegged to some fiat currency such as the US dollar.
On Wednesday, PayPal made the announcement that it has generated $6.5 billion in net revenue and added 2.4 new accounts in the first financial quarter of 2022, alongside its data on digital wallet usage.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
