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| Statement |
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| So as we talked about before and I'll say it again, our branded experience is -- our branded checkout is healthy |
| And so what we are working on as a team is making progress every single day, ensuring that this quarter is better than next quarter is better than the following quarter and ensuring that our teams are just executing |
| And so now a combination of being able to price to value based on the quality of the product and expanding into small business and international, I think, gives us lots of opportunity for margin expansion |
| And the energy and the passion of our teams has been phenomenal |
| It's been really exciting |
| It is, from an active use perspective, very, very strong and in a demographic that is highly valuable |
| Fastlane now takes that to the next level where they have the best-in-class branded experience and the best-in-class guest checkout experience |
| Alex Chriss When I think about where we are today, I believe we've got the best product in the market |
| And I expect Braintree and PPCP to be nice, profitable growth drivers for us |
| As we continue to roll out Fastlane, our upgraded experiences and continue to understand what we already know with our innovation that monetizes better and then we price to value in these conversations, we should continue to see profitable growth there |
| It gives them a reason to choose PayPal for every single purchase, and it creates the flywheel of merchants getting better checkout experience |
| That goes from innovation to go to market to how we work with customer service to our OpEx and how we continue to drive efficiencies throughout our ecosystem and ensuring that we're delivering the most thoughtful and profitable growth for the organization |
| So branded from a volume perspective continues to grow and grow in a healthy way |
| So whether it's Braintree or PPCP, there is a huge advantage to our merchants to be able to have one place for them to be able to have branded experiences as well as unbranded |
| Transaction margin dollars for branded are growing and growing well |
| But branded continues to grow and is doing well for us |
| Did you know that if you actually used PayPal, you could have saved 2% or you could have gotten this reward?" So the network effect starts to build, and it gives us, I think, a competitive advantage in being able to drive branded checkout and growth over time |
| Again, very early days, but our ability to tap into service-based businesses and allow those businesses to, in a hyper-local way, communicate with their customers and take these payments, think about how they provide incentives that offers for them to get money back or get access to their customer base in a very social element, which is what made Venmo great, I think are three very clear monetization opportunities |
| But we have huge opportunity |
| We are still the one that's driving great conversion |
| And so far, the conversations have been fantastic |
| And again, I think it's a competitive differentiator for us |
| And I think it's an opportunity for us |
| You’ve talked about improving the transaction margin profile there with more SMB focus and incremental services |
| And as we talked about, I think we have an opportunity to price to value and continue to grow our profitable transaction margin dollar growth on unbranded, and that's going to be a key focus for us this year |
| And I think those were surprises that it wasn't clear to me when I came that those were the areas that we had strength in |
| And it's certainly a great asset with a lot of active young consumers |
| I believe with innovations like Fastlane, we've now leapfrogged the competition and proven ourselves at scale |
| Venmo is a tremendous asset |
| So that allowed us to increase velocity and allowed us to really allow the team to understand what we were capable of |
| Statement |
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| When we're talking about this, what we're talking about is actually disrupting really the ad model for merchants |
| I think mobile checkout, we, over the last few years, have lost the high ground in terms of being able to have the most seamless experience |
| The passion of our merchants has surprised me |
| But in all transparency, I think there are certain elements in which we have lost our advantage in frictionless |
| James Faucette So probably one of the most challenging questions that we have to answer for investors, et cetera, is that kind of pitch conceptually has been around for 20 years |
| And one of the big hurdles particularly for the -- within the payments ecosystem has been getting merchant buy-in because of the concerns around ultimately, like if you just use a basic example of like in part of building that profile that you're going to take to Lowe's, you're probably relying on purchases that came from Home Depot if you're building my profile, right? And for Home Depot and for Lowe's, that becomes uncomfortable |
| And I think perhaps this is misunderstood |
| Then we have another component of really other products and services that we have that are a drag to the business |
| In all transparency, the other things that have surprised me are some of the things that I think we need to work on |
| It's just a blessing to be here |
| I also think we have not done a very good job of monetizing this product |
| That is an experience that is fraught with friction and errors and abandoned carts |
| But one of the things that when we look at the top 500 e-commerce merchants in the U.S., every quarter, which we do like PayPal's low level of churn has been like you just don't lose merchants |
| Look, I know everyone is always impatient |
| So one, we have to nail the experience |
| But rewards today, I think, are very generic |
| And the merchants that you do lose at a much lower rate than other checkout wallets |
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