Partner, Bloomberg, CEO discussed on Bloomberg Best
A toll. I'm Joan Doniger telling WBZ and listeners the dish ACOG, oh, candy maker is stepping in to fill the void left by the disappearance of those conversation. Valentine's Day hearts. I'm Andrew O'day on WBZ in Boston. Reporting on the closure of Panera breads last pay what you want location. I'm Ed Corry on W O A in San Antonio. I'm reporting BP smashed earnings estimates and showed veterans, Michelle. Thank you, Andrew pay pal president. And CEO, Dan, Schulman was one of the youngest senior executives at AT and T helping to launch virgin mobile USA with Richard Branson moving to American Express and finally being named the CEO of pay pal in two thousand fourteen following it split from EBay, so Ed. Bloomberg's David Westin. Spoke with the CEO about pay pals mission, then MO and the democratization of financial services. Most people think of payback some button on a website that you can click and simply and securely buy something from any commerce site. Paypal really is much more than that. It's a digital payments platform that enables consumers to manage a move their money in the digital age and for merchants it's basically an operating system that allows them to move from traditional retail, which is really in store. And with the advent of mobile phones, right now, everybody is moving towards mobile commerce, which is a blurring of online and offline and we provide a suite of capabilities and services on that platform to help retailers move into the mobile commerce sage. What does pay pal want to be? So our vision as a company is related democratize financial services so large it's an expensive vision. And basically, it's a fancy way of saying that managing and moving money should be a right. For everybody and not just. A benefit for the affluent. So for us. This is really about. How do we provide access to basic capabilities for people who are outside the financial system? And they're over one point seven billion people around the world that live outside the financial system. And so for us democratizing. Those capabilities is really our mission you partner with the big banks. And yet in some ways you compete with him. Don't you? Yeah. So that's a really interesting question and probably the biggest strategic move. We made it pay bell was deciding to open our platform up provide consumers choice on every single transaction. That would make before we would steer consumers to lower cost items in their wallet which helped us, but confuse consumers. And so we said ourselves if we're going to be a customer champion, we need to make sure that customers can make a choice on how they wanna pay every single time. They make a transaction. And so we opened up our system, and when we opened up our system and stopped steering people. It enabled us to also partner with the industry who it considered us. Previously more frenemy, a friend because we drove tremendous digital volume each financial institution. But an enemy because we were steering people away from maybe. More profitable things for the industry. And so when we basically said to the industry all were going to do is provide alternate choice for consumers. It opened up the ability for us to be the largest digital distribution platform for financial institutions, and we've done a thirty five big major strategic partnerships since we made that change. In fact, the whole competitive dynamic force has changed fundamentally from it's actually more benign than it was where we were four years ago because we're partnering with financial institutions sort of on the war on cash think with me about the social media world to what extent do the Facebooks of this world. Goodness knows the Amazons this world increasingly offer the sort of service that you do. Yeah. So in many cases, those platforms, not necessarily Amazon, but Facebook, Google, Microsoft Alibaba, most of the major tech companies Guber Airbnb are using the pay pal platform to move into payments payments is a really complicated industry. I mean, it's not just managing and moving money. But you've got privacy concerns. You've got regulatory you've got compliance. You've got enterprise risk. You've got gotta worry about fraud. It's you've got all of that regulatory environment in every single country that we operate in over two hundred countries. So once we opened the platform as opposed to again competing, and basically said look here is you can tied into our platform. You can use our services both on a branded and unbranded basis. And just leverage this capabilities. We went from being potential competitors actually being partners and that again. Like just announcing numerous things with face very close partners with I'm very close partners with Google pay pal is more than just pay pal. It's also then MO. Yeah. Talk about where it is. And how it works. So I think that was really one of the crown jewels of pay pal. Today is already at a seventy billion dollar run rate in terms of processing that's goes over that platform, it grew last quarter at seventy eight percent hero for year growth and for three quarters in a row the number of net new actives coming onto then Mel has hit a record inch every time. And so we're really pleased with with them. But what them really is is it's a value proposition oriented to the millennial generation, and the reason that it's so successful. There is that it basically takes every payment and turns it into an experience when you do a payment in a tag that payment with either an emoji, or what it was for you share it with your friends, you can split transactions with your friends, and it really ties into this whole social. Network. Experience that the millennial generation grew up in. So it's magic is that it's not so much a payment application as it is sort of an experience application, and and it just grows by leaps and bounds right now. Is it as successful financially? How do you make money off of it the potential there? So the best way to think about van mill is the think about pay pal pal started off as a free service peer to peer service, then most started off as a free peer to peer service. Now what we're doing is we're adding more and more capabilities than now. That are what we call monetize symbol. So then MO user can shop and buy from over from any papal merchant here in the US, and they take that out of their counter in the merchant pays us transaction fee for that. We've put a card debit card so somebody can use their vendor bouncing account at offline merchants right now, we earn money off of that. If you want to take money. Immediately out of your remote count to your Bank account, which are small fee for that. So we're basically very slowly. But surely building capabilities and benefits to the user base. That added more value to them, but also start to create a financial model for us that was pay pal president and CEO, Dan Shulman, and that's all for this edition of Bloomberg best. You can see all of our best work at best. Go on the Bloomberg.