PayPal CEO: it’s expensive being poor
Online payment provider PayPal has been consistent in trying to help people with less live financially secure lives, whether that’s by offering a great credit service, or making it easier for working mother’s to return to the company. Now, the company’s CEO, Dan Schulman, is taking this mission to the next level, looking for more ways to help people ”outside of the financial frameworks of banks and the like” to get by.
PayPal’s share price is up 63% year to date
SOURCE: Yahoo Finance
Speaking recently, Schulman explained why he takes this mission so seriously – and what he hopes PayPal can do to further it:
There’s a saying that it’s expensive to be poor. You want to cash a check, send money to a loved one, get credit, even pay your bills. For those who are outside the financial system — and there are over 70 million adults in the U.S. and over 2 billion people in the world — those basic consumer transactions can be incredibly time-consuming — you stand in line for 30 to 45 minutes — and very expensive.
“On average, an underserved consumer spends 10% of their disposable income on unnecessary fees and interest rates. So democratizing financial service is basically saying the following: We want managing and moving your money to be a right for all citizens, not just the privileged, or the affluent.”
Schulman has not offered any concrete solutions, of course, but he has identified a real problem, that is as true worldwide as it is in the U.S. This is a great opportunity for PayPal to corner a huge, and underserved, portion of the market – and given its recent successes, there’s every indication it can do it.
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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