CEO of online payments giant PayPal, Dan Schulman, has conferred his investigation of the current financial system’s deficiencies. Schulman declared it is ineffective and affecting millions of people to be excluded as the company expands into cryptocurrencies.
“The pandemic has brought focus to the stark reality that billions of people across the world are struggling to get by. In fact, in the past nine months, over 100 million … adults moved into extreme poverty. The current financial system is just not working for most people. It’s inefficient and expensive for the underserved,” Schulman said during an earnings call on PayPal’s results for the third quarter of 2020 yesterday.
He said that modern technology, combined with an emerging financial platform, has the potential to tilt the odds in favor of the disadvantaged majority, driving “a future of inclusion and financial health.”
As claimed by Schulman,
“As the use of cash continues to decline … central banks around the world are seriously exploring or even trialing forms of retail digital currencies that they issue directly. And it’s also clear that digital wallets are a natural complement to all forms of digital currencies,”
With this in understanding, the firm is starting cryptocurrency services for its users, including a new digital wallet, and plans to cover central bank digital currencies (CBDCs).
Schulman forecasts that the digital economy’s digitization, combined with the increase in digital wallets’ popularity, will drive PayPal’s growth in the coming decade.
Schulman confirmed that the company has already rolled out its new crypto services to 10% of its customers in the US “a couple of days ago,” while the rest of their American clients should be able to use it in 2-3 weeks. According to the CEO, their customers are “very eager” to start using crypto, and their waiting list of new crypto users exceeded their expectations by “2-3” times. Due to higher than expected demand, PayPal said it’s going to increase their weekly limit of crypto purchases by 50%, to USD 15,000.
“We are investing to create one of the most compelling, inexpensive digital wallets in the world, and you can see this beginning to play out in our strong Q3 results,” Schulman stated, adding the last quarter brought a record USD 247bn in total payment volume on the platform.
“We are seeing substantial increases in the use of Venmo as the pandemic continues on, as more consumers turn to their mode to live their financial lives, including the adoption of direct deposit functionality, and later this year the Venmo credit card,” according to Schulman.
As announced, the firm plans to extend its new crypto services to other countries and Venmo in the first half of 2021.
“It’s just the beginning of what we want to do,” the CEO said, adding that he sees “a lot of interesting things” that they can do with cryptoassets. Schulman did not expand on these plans.