Paypal Unveils Plans to Expand Cryptocurrency Services With 'Super App' and Open Banking Integration.
Payments giant Payments giant Paypal has outlined its plans to expand cryptocurrency services, including a new wallet "super app," open banking integration, expansion into the United Kingdom, and third-party wallet transfers. Paypal CEO Peter Thiel said, "We continue to be really pleased with the momentum we're seeing on crypto, and we're definitely adding incremental functionality."
Paypal Unveils Crypto Plans, Including Information on a ‘Super App'
During Paypal's second-quarter earnings conference call on Wednesday, CEO Dan Schulman discussed his company's crypto plans as well as the progress of the upcoming "super app."
“I'm pleased to inform that the initial version of our new consumer wallet super app is code complete, and we're now slowly ramping up,” Schulman said.
"High-yield savings, early access to direct deposit funds, new and improved bill pay functionality, messaging capabilities outside of P2P for family and friend communication, as well as additional crypto possibilities and customised deals and offers" will be among the new features.
He went on to say that "our advanced AI and machine learning capabilities will drive each wallet in a unique way to enhance each customer's experiences and opportunities."
“We plan to be fully ramped in the United States in the coming months, with a slew of products and services spanning payments, basic consumer financial services, commerce, and shopping tools debuting every quarter,” the CEO stated.
Ramsey El-Assal, an analyst with Barclays Investment Bank, inquired about the CEO's revised position on crypto and blockchain, as well as how Paypal planned to participate with the ecosystem from a consumer product standpoint, during the Q&A portion of the call.
“We're continuing to be quite pleased with the crypto momentum we're seeing on crypto, and we're obviously adding incremental functionality to that,” Schulman responded. The executive also stated that Paypal recently increased the weekly cryptocurrency purchase limit to $100,000 and eliminated the annual limit entirely.
In addition, the CEO stated:
"We're right in the middle of integrating open banking, which will allow us to fully integrate with ACH and make faster payments as a result of this. We plan to open up shop in the United Kingdom, possibly as soon as next month. We're currently working on transfers to third-party wallets, and we want to make sure that the process for taxes and tax reporting is as seamless as possible."
“As a result, we're really looking at how we can integrate that into both the trading and buying with crypto on our platform,” the CEO explained, adding, “We're also seeing strong adoption and trade of crypto on Venmo.”
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