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00:00HEADACHE, MORE PEOPLE SHOPPED ONLINE AND WITH THEIR MOBILE PHONES THAN SHOPPED IN STORE. THERE IS A TREMENDOUS AMOUNT OF SECULAR TAILWIND AROUND THE MOVEMENT OF CASH TO DIGITAL IN THE EXPLOSION OF MOBILE PHONES AS WELL. YOU HAVE ALL THE POWER OF THE BANK BRANCH IN THE PALM OF YOUR HAND RIGHT NOW. I THINK THERE IS A TREMENDOUS AMOUNT OF TAILWIND BEHIND US. DAVID: IS THERE A LIMIT TO THE NUMBER OF DIGITAL PAYMENT PLATFORMS? >> A GREAT POINT. YOU HEAR AN ANNOUNCEMENT ALMOST EVERY SINGLE WEEK ABOUT ANOTHER PAYMENT FORM GOING ON. WHAT MERCHANTS ARE REALLY CONCERNED ABOUT IS NOT DIGITAL PAYMENTS, BUT USING MOBILE AND SOFTWARE TO GET CLOSER TO THE CUSTOMERS. MOST PEOPLE CONFLATE DIGITAL PAYMENTS WITH TAPPING YOUR PHONE AT THE POINT OF SALE. I THINK THAT IS JUST A FORMFACTOR CHANGE. IF IT IS JUST A MATTER OF TAPPING YOUR PHONE VERSUS WIPING YOUR CARD, THAT IS NOT VERY FIGHTING. A REAL VALUE PROPOSITION CHANGE WHERE FOR INSTANCE YOU COULD ORDER AHEAD, YOU COULD GET THE LINE, PICK UP YOUR FOOD AND GET AUTOMATIC REWARDS ON YOUR MOBILE ON AND PAY FOR SOME OF THE TRANSACTION WITH THOSE REWARDS, THAT IS THE REAL VALUE PROPOSITION CHANGE IT WHEN THAT STARTS TO HAPPEN AND RETAILERS ARE LOOKING AT THAT NOW, YOU WILL START TO SEE AN ACCELERATION OF DIGITAL AIM IS OFF-LINE. YOU ARE ALREADY SEEING IT ONLINE AND IN AT. >> FROM TRADITIONAL PROVIDERS LIKE MASTERCARD AND PEOPLE LIKE THAT, AS WELL AS FROM APPLE AND APPLE PAY AND RINGS? >> THERE ARE A TREMENDOUS NUMBER OF ANNOUNCED AS. IN AN EXPLODING MARKET LIKE DIGITAL PAYMENTS, YOU EXPECT A LOT OF COMPETITION BUT THE REAL COMPETITION IS NOT THOSE YOU MENTIONED, IT IS CASH. EIGHT PERCENT OF THE WORLD'S TRANSACTIONS ARE DONE IN CASH. AN INCREDIBLY EFFICIENT FORM OF CURRENT. OUR GOAL IN THE FINANCIALS IS TO TAKE AN INEFFICIENT USE OF CASH AND TURN IT INTO A DATE -- TO DIGITAL PAYMENTS, WHICH ARE FASTER AND EASIER AND COST LESS FOR CONSUMERS. >> THE TRANSITION FROM CASH TO DIGITAL WILL CONTINUE TO HAPPEN. BUT I WANT TO MAKE SURE WE UNDERSTAND. YOU DO NOT FEEL ANY COMPOSITORS -- COMPETITIVE THREAT FROM VISA CHECK OUT? >> OF COURSE THERE IS A PETITION, BUT FOR ME, THE BIGGEST THING IS WE HAVE GOT A TREMENDOUS AMOUNT OF SECULAR WIN GOING ON. A LOT OF ADVANTAGES WE PLACE AGAINST COMPETITORS OUT THERE. I TELL THE COMPANY, LET'S FOCUS ON EXECUTING THE GAME PLANS. IF WE DO THAT, OUR VALUED -- IS EXTERNALLY STRONG. WE ARE GETTING NOW. THE THING IS HOW YOU GET PEOPLE TO MOVE FROM USING CASH TO DIGITAL FORMS OF PAYMENT. YOU HAVE VERY STRONG VALUE PROPOSITIONS, A BRAND THAT STANDS FOR TRUST AND SECURITY, THAT IS WHAT WE HAVE TO DOUBLE DOWN ON. DAVID: HEART OF EVERY GOOD CEO'S'S EFFORTS. HOW DO YOU MEASURE WHETHER YOU ARE MAKING GOOD PROGRESS OR NOT? I YOU MEASURING THE COMPETITION? DO YOU MEASURE NUMBER OF TRANSACTIONS WITH DOLLARS? >> YOU LOOK AT NUMBER OF ACTIVE SUBSCRIBERS THAT EVERYONE HAS, THE NUMBER OF TRANSACTIONS PER SUBSCRIBER, AND FOR US, WE LOOK AT THE REVENUE GROWTH AND CASH FLOW. THOSE ARE FOUR KEY METRICS THAT DEFINE OUR BUSINESS. WE LOOK AT THE CUSTOMER NEEDS OUT THERE, AND DO WE HAVE A VALUE POSITION PUSHING THOSE BOUNDARIES? WE JUST WATCHED A SERVICE CALLED ONE TOUCH. IT ALLOWS YOU ON A MOBILE PHONE WITH YOU REGISTER IT TO NOT HAVE TO PUT IN YOUR USERNAME AND PAST. YOU LITERALLY TOUCH A BUTTON AND YOU HAVE CHECKED OUT. IT IS SIGNIFICANT ADVANCEMENT IN CHECK OUT THOSE KINDS OF ENHANCEMENTS CAN ONLY COME WHEN YOU HAVE THE RISK ALGORITHMS THAT WE DO HERE THEY ARE REALLY WHAT ADVANCE US AGAINST COMPETITION AND MOST IMPORTANTLY ALLOW US TO SATISFY CUSTOMERS. DAVID: I WANT TO KNOW HOW YOU'LL MAKE MONEY WITH BEN MOKE HERE IT ARE YOU GOING TO PUT ADVERTISEMENTS ON NOVEMBER -- ON DEMO OR GENERATE SOME REVENUE? >> AS YOU KNOW, IT IS THE WAY THE MONEY WILL STAY RIGHT NOW. IT IS GROWING OVER 200% FOR YEAR. A TYPICAL CUSTOMER OPENS THE VENLO APP FOR FIVE TIMES PER WEEK TO DO PEER-TO-PEER PAYMENTS. AS WE SAID IN OUR LAST EARNINGS CALL, WHAT WE WILL NOW DO IS OPEN UP THAN MOST OF PEOPLE USING IT CAN PAY WITH IT AT MERCHANTS. THAT WILL ALLOW US TO START TO MONETIZE THAN LOPEZ. DAVID: THE WORLD ECONOMIC FORUM CONSERVATIVES OF WITH MANY ISSUES, INCLUDING INEQUALITY PIER 1 ASPECT YOU FOCUS ON ITS FINANCIAL INCLUSION. IS YOUR MESHES -- IS YOUR MESSAGE RESONATING WITH WHAT YOU SEE HERE? >> ABSOLUTELY THE FINANCIAL

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PayPal CEO on Global Shift to Digital and Mobile Banking

PayPal CEO and President Dan Schulman discusses the performance of the company and his outlook for digital payment platforms. He speaks from the World Economic Forum in Davos, Switzerland on "Bloomberg ?GO?." (Source: Bloomberg)

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