PayPal: CEO Talks BNPL, Paidy, Vision & Bank Partners at JPM Conference

(Free on Substack) Company Update (PYPL US) (Buy)

A version of this was also published on my Twitter account.

Introduction: PayPal CEO Dan Schulman appeared at an investor conference (with JPMorgan) on Thursday (September 23). We highlight his comments on Buy Now Pay Later , the Paidy acquisition, PayPal’s long-term vision and partnering with banks.

PayPal “Buy Now Pay Later” is Different

PayPal’s “Buy Now Pay Later” (“BNPL”) is different. It charges no merchant fees or consumer late fees, despite the latter constituting the majority of revenues for many BNPL players. PayPal’s scale means that its bad debt is "among lowest". It also sees BNPL as not just a tool to provide consumer credit, but to provide flexibility in repayment timetable, mechanism, funding source, etc., even post-purchase:

Paidy Acquisition Not Just About BNPL

Similarly, PayPal’s recent $2.7bn acquisition of Paidy is not just about BNPL, but "opens up entire Japanese market". Paidy assets include a 2-sided network, 6m consumers, 700k merchants, and being embedded in the …