PayPal Holdings Inc (NASDAQ: PYPL) CEO Daniel Schulman has said there’s a need to “double-down on the digital wallet.”
What Happened: Schulman made his comments at PayPal’s first-quarter earnings call on Wednesday.
The CEO said PayPal needs to focus on the digital wallet because “We clearly believe that's where the future of the industry is going.”
“It's the future of PayPal. It is the heart of what we are trying to do from an engagement perspective. And so those are the two things that we really need to double-down on.”
See Also: How To Buy PayPal Shares (PYPL)
Why It Matters: Schulman said the redesigned PayPal wallet app has been installed by over 50% of the company’s user base, adding that customers who use the digital wallet transact 25% more at checkout than those who don’t.
“70% of our Buy Now, Pay Later users engage through our digital wallet,” said Schulman.
On Wednesday, PayPal reported Q1 numbers. Earnings per share came in at $0.88 compared with an estimate of $0.88. Q1 revenue grew 8% year-over-year to $6.5 billion beating a consensus of $6.4 billion.
Cathie Wood-led Ark Investment Management exited from PayPal recently. Wood said in an interview this month that she was betting instead on Jack Dorsey-led Block Inc (NYSE: SQ).
PayPal offers its customers access to Bitcoin (CRYPTO: BTC), Bitcoin Cash (BCH), Ethereum (CRYPTO: ETH), and Litecoin (LTC).
Price Action: PayPal shares rose almost 4% to $85.89 in the after-hours trading after closing 1.3% lower at $82.61, according to Benzinga Pro data.
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