Get ready to say hello to a new era of PayPal!
The payment giant is shaking things up with the introduction of artificial intelligence (AI) driven products and a one-click checkout feature. These exciting innovations are the brainchild of Alex Chriss, PayPal's new CEO, who's on a mission to breathe new life into the company.
AI is the talk of the town in the business world, driving U.S. stock markets to record highs. PayPal is jumping on this wave of enthusiasm, with hopes that these AI-driven innovations will boost its stock, which has seen a 22% dip since January 2023.
Chriss, a former senior executive at software company Intuit, has dubbed 2024 as a "transition year" for PayPal. He's committed to expanding revenues beyond transaction-related volume. "The data that we have and our ability to actually see what people have bought and know what merchants are trying to target, that's where I think AI is the huge opportunity for us," Chriss told Reuters.
However, the news has been met with a mixed response from investors, with PayPal shares dipping 4.6%. Analyst Andrew Harte from BTIG noted that while the innovations are promising, they might not be viewed as groundbreaking by investors.
So, what's on the horizon for PayPal? This year, they're set to roll out a platform that uses AI to help merchants reach new customers based on their shopping history. A separate AI-based tool, "smart receipts," will recommend personalised items to shoppers in their email receipts, sweetened with a cashback reward.
And let's not forget Fastlane, PayPal's "one-click" checkout feature, which has already sped up checkout times by nearly 40% in early testing. New features for Venmo business profiles are also in the pipeline.
With the S&P 500 index reaching its fourth straight record high close, fuelled by a rally in tech stocks on AI optimism, it's clear that AI is the future. As PayPal prepares to announce its fourth-quarter earnings on Feb. 7, all eyes will be on how these AI-driven innovations will shape the company's future.
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