PayPal's Chief Executive Officer Expresses Displeasure over Venmo's Growth

Wednesday, 15 May 2024, 11:30

PayPal (NASDAQ: PYPL) is facing challenges as its growth rate slows down, mainly due to the quality of growth offered by its unbranded checkout solution. The new CEO, Alex Chriss, finds the short-term retention of funds on Venmo 'unacceptable,' highlighting the difficulty in encouraging users to maintain balances on the platform. While Venmo shows promise, PayPal's management focuses on improving debit card penetration to enhance Venmo's monetization.
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PayPal's Chief Executive Officer Expresses Displeasure over Venmo's Growth

PayPal's Struggles

Why aren't users keeping money on the platform? PayPal Holdings (NASDAQ: PYPL) is struggling, with its revenue growth rate decreasing to 9% in the most recent quarter.

Quality of Growth

  • Growth Slowdown: Growth has slowed for PayPal, with much of it coming from lower-profit-margin sources like the unbranded checkout solution.

Venmo's Issue

  1. Retention Challenge: Venmo faces challenges in retaining funds, with 80% leaving within 10 days, a scenario deemed 'unacceptable' by CEO Alex Chriss.

In conclusion, PayPal's struggles highlight the need to address the quality of growth and enhance Venmo's user retention for long-term sustainability.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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