"PayPal Holdings Inc., an early mover in the world of digital payments, now finds itself in a rut it can't seem to get out of. Its customers are increasingly using other ways to pay. A former executive criticized the company in a rare public display of frustration. And investors have sent PayPal's shares down 30% since the start of the year."
"While revenue from businesses like Venmo continue to skyrocket, problems have continued to plague the so-called branded checkout business, which is home to the eponymous PayPal buttons found on retailers' websites around the world. Last week's ouster of Alex Chriss after less than two and a half years as chief executive officer has prompted analysts to weigh what businesses PayPal might sell off to get its performance back on track and quell shareholder concerns."
"Based on the CEO change, it looks like it's more of a split-the-business-up kind of strategy, said Chris Donat, head of payments and fintech research at BWG Global. The biggest challenge is that they have a lot of products that are facing multiple competitors, and they're likely to lose market share with those products, he said, adding that there's nothing really new and exciting with PayPal checkout, and there hasn't been for a while."
PayPal is experiencing slower performance as customers increasingly adopt alternative payment methods and investors have driven the stock down about 30% year-to-date. Venmo and other units report strong revenue growth, while the branded checkout business faces ongoing problems and intense competition. The removal of CEO Alex Chriss after less than two and a half years has led analysts to consider divestitures and structural changes to restore performance and reassure shareholders. Observers suggest a potential split-up strategy and emphasize the need for PayPal to modernize checkout offerings to compete with Stripe, Adyen, Apple Pay, and Klarna.
Read at www.mercurynews.com
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