Intuit veteran Alex Chriss will replace
One key challenge facing Chriss is monetizing the multiple shopping, payment and financial services functions linking PayPal and its large user base through the firm's "
PayPal's rivals, such as Block and Stripe, are also building super apps to deepen their own relationships with clients. "The payment space is evolving quickly, especially with payment companies adding additional embedded functionality and ancillary financial services, such as consumer and business lending," said Aaron Press, research director for worldwide payment strategies for IDC. Press noted the fierce competition across all of PayPal's lines of business, including P2P payments, wallets, alternative payment methods, buy now/pay later lending and merchant processing. "Internally, PayPal has had challenges rationalizing and packaging the broader product portfolio, which impacts its go-to-market execution," Press said.
Like many digital payment companies, PayPal enjoyed dramatic growth during the pandemic as merchants and consumers moved online. But the company's
The company's earnings more recently have been mixed.
PayPal has made several moves recently. It added a
Beyond fintechs, PayPal faces rivals on several other fronts, including traditional U.S. payment processors such as Fiserv and FIS, European processors such as Adyen and financial technology companies. These companies have spent years developing and acquiring technology that enables them to reach both merchants and consumers modernizing their mix of payment processing and financial services.
Retailers are also expanding point of sale capabilities. Amazon, for example, recently announced it would expand its "
Chriss' marketing experience at Intuit could be helpful in boosting engagement among PayPal's users, according to analysts.
The average active user of a mobile wallet with marketing capabilities generates between $236 and $736 per year, according to Crone Consulting. The firm noted PayPal has 435 million active users, and that its potential addressable revenue would be more than $120 billion in revenue on the low end, ranging to more than $300 billion.
"That's what Chriss will be aiming for," said Richard Crone, who leads Crone Consulting. Chriss' standout advantage in taking over PayPal is his understanding of serving small to medium-size business customers, an audience that has been a significant source of growth for PayPal, especially as non-branded payment services show promising growth trends.
"His work with Mailchimp is proof that he understands that vision and how to integrate it into a legacy company," Crone said.
Intuit's small-business and self-employed product group was "arguably the best performing segment" at Intuit, William Blair said in a research note. Chriss led a global organization with thousands of employees that delivered Quickbooks and Mailchimp to millions of users globally, growing revenue at a 23% compound annual growth rate over the past five years, according to William Blair.
"We believe the experience sounds highly relevant to PayPal as it reemphasizes focus on small merchants and launches PayPal Complete Payments, the payment company's small business-focused processing service," the firm said in its research note.
PayPal pointing to Chriss' success with Mailchimp speaks to the need for skill in integrating different lines of business into cohesive solutions, and hints at potential acquisitions, observers said.
"Chriss' role in Intuit's Mailchimp acquisition was likely seen as valuable experience that could help PayPal in its mission to play a deeper role at the top of the marketing funnel," said Jordan McKee, director of the fintech research and advisory practice at 451 Research and S&P Global Market Intelligence. "The hire may also signal PayPal's appetite for a leader that could help drive and navigate transformative M&A deals in the future."
PayPal did not provide comment by deadline. "Throughout my career, I have championed small and medium businesses and entrepreneurs, who are the backbone of every economy in the world," said Chriss in a release.
