In a move aimed at stamping its position as the leader in digital payment, PayPal Holdings Inc (NASDAQ:PYPL) says it wants to become part of consumers’ daily lives. The digital payment giant is working to become the daily-use digital wallet for its users. Over the past years, PayPal has worked to diversify itself and become more than just a payment processor.
PayPal is seeking to become a full-fledged digital wallet that allows its users to make payments, manage rewards, pay bills, and manage their credit. It is this reason that the company acquired rewards startup Honey and peer-to-peer payment app Venmo.
“The analog is somewhat akin to what your physical wallet is today,” John Rainey, PayPal’s CFO, said. “We want to invest in areas that are value-add consumers and really play into our value proposition.”
PayPal’s split from eBay
PayPal made big strides since its break off from eBay in 2015. Among other things, the company has made several acquisitions as it seeks to cement its position as the default payment method for the electronic marketplace.
PayPal has seen a boom in business in 2020, largely due to the COVID-19 pandemic. The pandemic has seen an increase in online business as lockdowns are imposed to curb the spread of the virus. PayPal’s stock price has more than doubled since mid-march. In addition, the company has reported record transactions and new accounts.
PayPal reported a 30% growth in volumes plus a 25% growth in revenue in 2Q 2020. The company added more than 21 million new accounts and set a new quarterly record high.
PayPal betting big on QR codes
In the wake of the COVID-19 pandemic, many businesses turn to contactless payments as consumers rethink the way they handle hard cash and credit cards. It is on this ground that PayPal is betting on QR codes, which it launched in May.
PayPal has since signed up its first client. The CVS Pharmacy will be the first national retailer to use QR codes at its 8,200 stores. PayPal users will be able to access the QR codes through PayPal’s platform as well as its peer-to-peer app Venmo.