Dan Schulman, CEO of the online payments giant PayPal, has presented its diagnosis of the shortcomings of the current financial system, claiming that it is inefficient and causes the exclusion of millions of people, as the company expands towards cryptocurrencies.
“The pandemic has focused on the stark reality that billions of people around the world are struggling to survive. In fact, in the past nine months, more than 100 million adults fell into extreme poverty. The current financial system just doesn't work for most people. It's inefficient and costly for the underserved, ”Schulman said during an earnings call on PayPal's Q3 2020 results yesterday.
He said 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 financial health and inclusion."
“As the use of cash continues to decline, central banks around the world are seriously exploring or even testing forms of retail digital currencies that they issue directly. And it is also clear that digital wallets are a natural complement to all forms of digital currencies, ”according to Schulman.
With this in mind, the company is launching cryptocurrency services for its users, including a new digital wallet, and plans to adopt central bank digital currencies (CBDC).
The company's CEO predicts that the digitization of the digital economy combined with the rise in popularity of digital wallets will fuel PayPal's growth in the next decade.
Schulman confirmed that the company already rolled out its new cryptocurrency services to 10% of its customers in the US a couple of days ago, while the rest of its US customers should be able to use it within 2-3 weeks. According to the CEO, his clients are "very eager" to start using cryptocurrencies and his waiting list of new cryptocurrency users exceeded their expectations by "2-3" times. Due to higher-than-expected demand, PayPal said it will increase its weekly cryptocurrency purchase limit by 50%, to $ 15,000.
"We are investing to create one of the most attractive and affordable digital wallets in the world, and you can see this beginning to manifest itself in our strong third quarter results," said Schulman, adding that the last quarter brought in a record $ 247,000. million in total volume payment on the platform.
Commenting on Venmo, the company's digital wallet app, the CEO said had an inactive consumer base in excess of 60 million, making it a solid vehicle for the company's planned expansion.
“We are seeing substantial increases in Venmo use as the pandemic continues, as more consumers turn to the way they live their financial lives, including the adoption of the direct deposit feature and, later this year, the Venmo credit card, ”according to Schulman.
As reported, the company plans to expand its new cryptocurrency services to other countries, as well as 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 cool things they can do with cryptocurrencies. Schulman did not elaborate on these plans.