PayPal and Venmo introduce six groundbreaking innovations to transform the future of commerce

The enterprise presents reimagined checkout and guest checkout experiences, a new advanced offers platform for merchants, and a new consumer app to earn cash back and provide customers with more incentives to shop using PayPal. Additionally, new Venmo enhancements empower local small businesses to be discovered and expand.

SAN JOSE, Calif., January 25, 2024 –PayPal Holdings, Inc. (NASDAQ: PYPL) today disclosed six new innovations the company is experimenting with and introducing to the market this year to transform commerce through artificial intelligence (AI)-driven customization for both merchants and consumers. Alex Chriss, President and CEO, introduced during the PayPal First Look keynote: a wholly fresh PayPal checkout experience that drastically expedites the checkout for consumers and helps merchants transform transactions as never before; Fastlane by PayPal, an incredibly speedy and more intelligent guest checkout experience; Smart Receipts, offering customers AI-customized suggestions from merchants to ensure customer retention; the PayPal advanced offers platform for merchants to supply pertinent, personalized, real-time offers to consumers and drive additional sales; a restructured PayPal consumer app offering shoppers new methods to earn cash back and more reasons to use PayPal; and Venmo’s enhanced business profiles, enabling small businesses to find and engage new customers and broaden their businesses.

“PayPal is on a mission to revolutionize commerce, globally, and today we are starting the next chapter,” said Alex Chriss, President and CEO, PayPal. “With nearly 400 million consumer accounts, and 35 million merchant accounts, PayPal handles transactions for about a quarter of the world’s e-commerce transactions each year, but more importantly, shoppers trust PayPal to power their payments.”
Chriss continued, “PayPal is introducing six new innovations that will not only solve customer pain points but we believe will change the world of payments and commerce. From new solutions for merchants to hasten checkout and tailor offers, to a new consumer app that will give our devoted customers more reasons to shop with PayPal, to the next generation of Venmo designed to be the growing platform for local small businesses, PayPal has always brought the future of money to our consumers and merchants and today marks the next revolution.”

With digital commerce projected to exceed $6 trillion in 2024, merchants need new, advanced techniques to expedite consumers through checkout in a seamless manner that decreases lost sales. Additionally, consumers are consistently striving to extend their budgets and get as much value while shopping as feasible. PayPal’s global scale and extensive data set, in combination with AI, will produce the next generation of value for both consumers and merchants.
Transforming Checkout
Checkout is the final interaction between a consumer and a merchant, and while it seems so simple, any friction can interrupt the moment. Business owners aim to concentrate on the next sale and consumers strive to eliminate any annoying interruptions like password prompts or lagging response times. To deal with this, PayPal has significantly sped up the checkout process to encourage customers to select PayPal, integrate passkeys to enable customers to log in with their face or fingerprint with one touch, and to enhance latency. In reality, this will minimize latency by as much as 50%, and enable customers to check out twice as fast, all with the same level of security and trust they have come to expect from PayPal. Furthermore, the new PayPal checkout will also employ AI to become more intelligent and faster over time.
Introducing Fastlane by PayPal
Merchants are forfeiting sales because the guest checkout process is both slow and cumbersome. Additionally, shoppers frequently do not sign in or sign up while browsing, and when they are ready to check out, they must find their password, update their credit card information, or shipping address. To assist, PayPal is introducing Fastlane by PayPal, a new one-click guest checkout experience that businesses utilizing PayPal’s platform will be able to offer their customers, allowing them to make a rapid and effortless purchase. Customers simply save their information with Fastlane to check out in as little as one tap. No username or password to remember, no personal information to update, and no need to share a credit card with businesses all over the web.
PayPal has been testing Fastlane by PayPal with a group of merchants and is seeing unparalleled early results. Select merchants on BigCommerce, a leading open software-as-a-service (SaaS) e-commerce platform and long-time PayPal partner, have observed that Fastlane can recognize 70% of guests and increase checkout speeds by almost 40% compared to a traditional guest checkout process.
Introducing PayPal Smart Receipts
Merchants want to entice customers to revisit, and consumers want to find the best deals, so PayPal is clearing up the uncertainty for both with the introduction of Smart Receipts. When consumers shop with PayPal, they will receive a receipt that allows them to not only track their purchase but also utilizes AI to forecast what they may want to buy next from that merchant. As a result, now merchants will be able to include personalized recommendations along with a cashback reward offer on the receipt.
As nearly 45% of PayPal customers globally open their email receipts every day – an incredible open rate – this could mean tens of millions of merchants and hundreds of millions of consumers seeing timely, hyper-relevant recommendations and rewards in these receipts. This increases the opportunities for merchants to reconnect directly with their customers, increasing the probability of repeat shopping and business growth.
PayPal is also leveraging AI-powered suggestions that are based on shopper behavior data, combined with the scale of what PayPal can see across the web. Through personalized AI, PayPal is giving any sized merchant the power of being one of the largest retailers in the world.
Introducing PayPal Advanced Offers Platform
Presently, when consumers shop online, their experience includes ads generated by their browsing behavior only, which can be irrelevant and frustrating. In response, PayPal will use unique customer insights to build a dynamic, truly personalized advanced offers platform giving merchants the ability to reach customers based on what they have actually bought across the internet, down to the stock keeping unit (SKU) and the individual product. This new, performance-based offers platform has the potential to use AI to organize and analyze data from nearly half a trillion dollars’ worth of merchant transactions globally. The platform will also allow merchants to customize offers for customers, and merchants will only pay for performance, not impressions or clicks. For PayPal consumers, it means they will get more relevant offers and more opportunities to earn rewards.
PayPal is also building transparent, easy-to-use privacy controls so if a customer does not want their data shared with merchants to personalize their shopping experience – they can opt in or out.
Reinventing the PayPal app
PayPal is also reinventing the PayPal app to provide loyal customers even more reasons to shop and pay with PayPal every day. Too often consumers are shown the top items from the largest merchants that can afford to buy the best search terms. Additionally, consumers are still feeling the inflationary pinch and looking for methods to spend smarter and find the best deals. This is why PayPal is introducing CashPass to give customers access to hundreds of personalized cash back offers from top brands in the U.S. A user will simply need to tap on the offer, shop at that business, and check out with PayPal. CashPass uses AI to organize personalized offers for customers based on shopping behaviors, and customers will regularly discover new cash back offers giving them more reasons to visit the app.
Starting in March, PayPal is planning to launch CashPass with an incredible set of launch partners, so consumers can access offers from merchants such as Best Buy, eBay, McDonald’s, Priceline, Ticketmaster, Uber, and Walmart.
PayPal CashPass users will also be able to stack with other PayPal rewards such as cash back from the PayPal Cashback Mastercard®. Users can then put cash back into a PayPal Savings account and earn more on top.
Introducing the Next Generation of Venmo Business Profiles
Venmo introduced business profiles in 2021 to provide an affordable and easy way for businesses to accept payments and grow their business and has grown to a community of more than 90 million active accounts. Small businesses rely on word-of-mouth, social media, and reviews on other sites for referrals. It can be difficult to stand out on social media, and one bad review can set their business back. Venmo is solving this by introducing enhanced Venmo business profiles to help small businesses be discovered like never before. The next evolution of business profiles will add subscribe buttons, profile rankings, and the ability to offer promotions to consumers, bringing powerful new ways for businesses to drive traffic, generate sales, and more meaningfully grow their business through increased visibility in the Venmo app.
For consumers, they will be able to discover top-ranked businesses endorsed by their network and enjoy cashback deals when supporting local businesses in their community. No other mobile payment service has a social feed as active, useful and as personal as Venmo, and this is a revolution in providing real-time offers and promotions at a hyper-local level for small businesses. The same type of privacy controls will be available on Venmo, as on PayPal.
All of these new experiences will begin rolling out in the United States throughout 2024.

For more information, visit http://www.paypal.com/us/whats-new/first-look.

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