The boss of PayPal Schulman: "Otherwise you will be destroyed by social media"

by Tim Schäfer, Euro on Sundays

Daniel Schulman freely faces his conference with investors in the New York Times building, while the head of PayPal wears jeans, a polo shirt and cowboy boots. Schulman can afford to be casual. In addition to the core business running on PayPal, other platforms of the US payment service provider also attract many customers. The number has increased by 15% from July to September, the group now has 254 million accounts. Users are also becoming more active, which pays off: at 15%, the profit was slightly higher than sales.

Schulmann obviously has a feeling for thisWhat comes to the generation smartphone. The payment service Venmo, a kind of financial Whats app, is particularly trendy. "It started as a service to send money to friends, and then gradually added value to users," says Schulman. Venmo has opened the app for all merchants who accept PayPal. The taxi maniac Uber opted for Venmo. Now there are also the Venmo debit cards that can be used in stationary trading at the cash register. The transaction is immediately displayed on the phone. Information can share users with friends. Money earns service on merchants' commissions.

Piggy bank for millenials

Even with the rescue app Acorns Schulman has a partnership. Many of the so-called millennials have been deeply affected by the financial crisis, the boss says of his
Target group. "Some have seen family, friends or neighbors of financial need, want to save more than you can imagine".

Furthermore, it is the first generationwho grows with the screen in mind. "Venmo is so popular because the app is connected to social media, with 94% of transactions involving emojis or being commented on," Schulman said. The app is opened by users four or five times a week, also to see what friends do. PayPal and Venmo see Schulman as financial counterparts of Facebook and Instagram. "We offer services that allow people to manage their financial life on their smartphones", is the belief of the PayPal boss.

But he also knows that young people can not be deceived. "You have the feeling that a brand is authentic," he says. What's really interesting in this generation: brands were once a promise, today is a good experience. "If you do not, you will be destroyed on social media," says Schulman.

Allied with the titans

The realization is reflected in the company. Since PayPal 2015 has moved away from the Ebay mother, services are constantly improving. PayPal customers have access to global banking giants such as Citigroup or JP Morgan Chase, as well as to the main Visa and Mastercard credit card issuers. 19 million merchants worldwide accept PayPal.

In February, the former mother withdrew on PayPal services and hired competitor Adyen. Schulman encourages him further. A means to expand the business: acquisitions. For the Swedish mobile payment service iZettle paid PayPal in the spring of $ 2.2 billion. iZettle this year is planning $ 6 billion worth of transactions and plans to generate $ 165 million in revenue.

Jetlore also landed in Schulman's shopping basket.
Founded by Stanford University computer science students, the startup helps retailers improve their shopping experience. The partners are Ebay, the US fashion house Nordstrom and the largest Japanese clothing chain Uniqlo. The Hyperwallet service reached $ 400 million in June. The app serves customers, freelancers and contractors to cash in quickly. The Expedia travel company is a reference customer.

The shopping tour continues. Schulman wants to get up to $ 3 billion a year in acquisitions and continue to look casual.

Investor Info

PayPal
Dynamic Primus

Ex-mother Ebay has been served by competitor Adyen since February, but PayPal can maintain its market leadership in online payment services. A base: partnership with global financial giants such as Citigroup, Visa or Mastercard. The business grows dynamically, with quarterly revenue growth of 14% and a 15% net profit. This year a 25% increase in profits is expected, 2019 is expected to be 20%. Warehouse growth.

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Sources of images: Poptech / flickr, Sean Gallup / Getty Images

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