Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

PayPal Wants to Be a Lot More Than an Online Checkout Button

PayPal Wants to Be a Lot More Than an Online Checkout Button

PayPal aims to be world’s next super app, akin to China’s Alipay and Tencent. ‘I think we have a chance,’ CEO Dan Schulman says in interview. PayPal is 20 years older but 90% smaller than its Chinese rivals and losing its attractiveness to Cryptocurrency holders.
PayPal Holdings Inc. is eyeing life beyond the checkout button, across U.S. and other Western jurisdictions.

In the coming months, the firm is planning to debut a bevy of new services, which could include high-yield savings accounts, check-cashing services and stock-investing capabilities. It’s all being done in the hopes of PayPal becoming the world’s next “super app,” akin to China’s Alipay or WeChat, India’s Paytm or Singapore’s Grab.

The stakes are high: If PayPal pulls it off, the company could become a bigger part of U.S. consumers’ lives than Amazon, Google or Facebook. But, in the U.S., there is no shortage of banking giants and technology firms that have tried and failed to accomplish what PayPal wants to do.

“It’s difficult to become a super app,” PayPal Chief Executive Officer Dan Schulman said in an interview. “I think we have a chance if we execute extremely well against this. But it’s obviously a place that a lot of companies are thinking about as well.”

The idea came to Schulman during a dinner three years ago at his home in Palo Alto, California, close to PayPal’s San Jose headquarters, with Martin Lau, the president of WeChat parent company Tencent Holdings Ltd.

As the two dined, a picture began forming in Schulman’s head: Consumers could come to the PayPal app for more than just paying for things online. It could be their one-stop shop for all things shopping and finance, mirroring the success WeChat has had in China.

“There’s too many apps on all of our phones -- I can’t have an app for my pharmacy, my grocery, for all the different retailers I have,” Schulman said. “I can’t have 40 to 50 different apps on my phone. I can’t remember the passwords, I don’t want to enter in all my info every time. There’s really only eight to 10 apps that we use every single day or every single week. Those apps are going to morph into what we call super apps.”

He ordered his team to begin conducting consumer research.

The feat, if PayPal pulls it off, will not be an easy one. Other U.S. companies have found little success with similar attempts.

Take Uber Technologies Inc. The ride-hailing giant announced in 2019 that it would create a new unit focused on financial services. Less than a year later, the executive tapped to lead the initiative left the company after Uber said it planned to “de-prioritize” several of the unit’s projects, which had included credit cards, a digital wallet and instant payments for drivers.

That contrasts with Grab Holdings Inc., which started as a Southeast Asian ride-hailing company and has since expanded into financial services, payments and food delivery. The company is poised to go public via a U.S. blank-check company that values the company at almost $40 billion.

JPMorgan Chase & Co.’s experience was more like Uber’s. The largest U.S. bank spent years touting its Chase Pay app, which was supposed to make it easier for people to shop and redeem card rewards. After the effort was slow to take off, the lender discontinued the app and ultimately shelved the entire project, encouraging consumers to instead sign up with its would-be competitor: PayPal.

“It’s going to be hard to create a super app as we know it, like what we’ve seen in China,” Sanjay Sakhrani, an analyst at Keefe Bruyette & Woods, said in an interview. “We have compartmentalized how we consume things. We didn’t have the luxury of finding things in one place like people in emerging markets have had because of the super apps.”

Still, Sakhrani said, some consumers might be open to trying the super-app model, such as the 25% of U.S. adults that struggle to access mainstream financial services.

The grandson of a union organizer in New York’s garment district, Schulman started his career at AT&T as an entry-level employee. He worked his way up to president of the firm’s consumer long-distance business before being asked by Richard Branson to be the founding CEO of Virgin Mobile USA Inc. in 2001. He shepherded the company’s sale to Sprint Nextel Corp. eight years later.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×