There can be no disputing that PayPal is the biggest name in fintech. PayPal predates the moniker fintech. It has been with us since the dawn of e-commerce and was fundamental to the whole sector getting off the ground.
When the world wide web was in its infancy, eCommerce seemed impossible. Not only were dial-up connections painfully slow, but there was no secure way to make payments. At the time, cash was still king, and people were reluctant to trust any online transaction. PayPal created a platform allowing people to transfer money to each other without sharing any banking details. The rest, as they say, is history.
PayPal now has over 286 million users worldwide. The company went from a peer-to-peer banking disruptor to THE trusted name in online payments. New companies have sprung up in the fintech sector, hoping to carve out a chunk of the market for themselves, but the best-known name is PayPal.
Over its short history, PayPal has faced many challenges. The latest one, in comparison, seems relatively minor; however, it comes at a time of change and uncertainty in fintech. PayPal will be starting its search for a new CEO, as the incumbent, Dan Schulman, is set to retire. Schulman, who turned 65 in January, will remain in post until December 31st. He has said he will continue serving on the Board of Directors to ensure a smooth transition.
In a statement on the company’s website, he cited personal reasons for his decision.
“I’m proud of what we have accomplished at PayPal and of the incredibly talented and committed people I work with every day.”
“Together, we have reimagined financial services and e-commerce and worked to improve the financial health of our customers. PayPal makes a difference every day for its customers and communities.”
He added,
“However, I’m at a point in my life where I want to devote more time to my passions outside the workplace. I remain 100 per cent committed to working closely with the Board and my eventual successor for a smooth transition and to ensure we keep our positive momentum on track.”
Schulman has been a transformational force at PayPal. When he joined in 2014, the company was owned by eBay. It was primarily associated with the checkout at the online auction site and being used for peer-to-peer transactions. He joined at the time eBay announced that PayPal would be split into a separate company – that deal was completed by 2015. Paypal reported very healthy revenues of $9.2 billion in 2015. However, that pales into insignificance when you compare it with the revenues this financial superpower now produces.
By 2022 revenues were up to $27.5 billion. The number of active accounts stood at 430 million, and PayPal now operates in 200 markets. Paypal’s payment volume grew from $288 billion to $1.36 trillion under his stewardship.
PayPal is now accepted at online checkouts in various e-commerce checkouts. Most major online stores and service sites now have it as an option, and it is increasingly common for it to be accepted in person. While it was once used for niche purchases, it is now their go-to payment option for many people. Customers only have to share their email addresses to make all kinds of online transactions. PayPal is accepted at online checkouts as diverse as online supermarkets and fashion retailers to travel agents and UK PayPal casinos like Casushi. The ability to link several payment sources in one secure place makes PayPal an attractive option.
In addition, PayPal has been innovative in keeping its services relevant and at the forefront of innovative payment solutions. The introduction of Pay Credit and Pay in four has made it a serious contender in the Buy Now Pay Later market. The big question is, where will it go next? PayPal has made small steps into the in-person payment market but is still generally regarded as an online payment option. With Apple Pay now offering Pay in 4 online, PayPal will not be able to sit on its laurels while the search for a new CEO happens. Perhaps they will make serious moves into the contactless space.
