PayPal’s Dan Schulman on the company’s future
Online payment provider PayPal has become a dominant force in the online transactions business since its split from eBay in 2015. The company is now valued at $62 billion compared to eBay’s $37 billion, and is looking increasingly like a fundamental part of the internet – similar, in that respect to Google and Facebook. UK newspaper The Telegraph recently sat down with the company’s boss, Dan Schulman, and he was happy to discuss what he sees as the company’s future.
PayPal’s share price has appreciated by 34% so far in 2017
SOURCE: Yahoo Finance
According to Schulman, PayPal’s mission is a fundamentally ethical one. He says: “we’re trying to democratize financial services, to ensure that management and movement of money is a right for all citizens, not the privilege of the affluent. For underserved segments of the population there’s a tremendous opportunity to serve them in a better way.”
Schulman says that American consumers are charged $140 billion annually in fees by traditional banks and lenders. 80% of this, he says, is unnecessary. What’s more, he thinks that ethics and success often go together in business:
“I don’t think there’s any inconsistency between being a mission-driven company and making money. I think those two are very consistent. It’s a tremendous opportunity for us to make a difference, but a tremendous opportunity for shareholders as well.”
Based on the company’s share price since it was spun off from eBay, Schulman seems to know what he’s talking about. Of that event, he suggests it let the company operate in larger markets, saying:
“When we were associated with eBay it was surprising to me how many merchants were very reluctant to work with PayPal, because we were accessing their data and their information and they felt in some way, shape or form they were competing with eBay. Freeing that perception of us being conflicted in any way has opened us up to working with retailers across the world and basically selling our proposition on the merits of what we offer.”
With a range of new interests, like lending to businesses, and complete control over the whole payment process (which, according to Schulman, differentiates PayPal from possible rivals, like Apple’s new service), PayPal has positioned itself squarely at the center of the Ecommerce trend.
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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