PayPal’s Dan Schulman Suggests Partnerships Coming After SplitSpencer Soper
PayPal will be an attractive payments partner and is open to new alliances after completing its spinoff from parent EBay Inc., PayPal’s incoming chief executive officer Dan Schulman told investors on Wednesday.
“We are in constant conversations about how the chess board is unfolding,” Schulman said at a Morgan Stanley conference in San Francisco.
Schulman, an American Express Co. executive who joined PayPal as president in December, didn’t name any potential partners. Schulman, who was previously at Virgin Mobile USA Inc., Priceline Group Inc. and AT&T Inc., said he’s maintained relationships with executives in the credit-card and wireless businesses. Potential partners who avoided PayPal in the past because they compete with EBay would be more willing seek partnerships after the split, he said.
PayPal is looking to defend its position as Apple Inc., Google Inc. and other companies seek to gain share in the mobile-payments industry. This week, PayPal agreed to acquire Paydiant Inc. to broaden its mobile offerings for merchants. Paydiant, founded in 2010 and based near Boston, helps companies such as Subway Restaurants Inc. and Harris Teeter Supermarkets Inc. develop mobile-payment services and customer-loyalty programs.
Schulman said he wants PayPal to be more than just a buy button. His goal is for customers to use PayPal daily to manage their money, instead of a couple of times a month for occasional online purchases. Of 162 million active accounts, each uses PayPal 26 times a year on average, with the size of each transaction growing, Schulman said.