B2B payments are fast becoming the biggest opportunity for stablecoins to gain traction—now PayPal has to convince everyone else.

PayPal Ads offers unique ad targeting via transaction data: Access to PayPal’s 400 million users aims to transform digital advertising for small and medium-sized businesses.

The integration is a win for PayPal after Amazon stopped accepting Venmo on its ecommerce site

American Express is expanding Amex Offers, which allows advertisers to serve card holders tailored deals. The expansion comes on the heels of Chase and PayPal launching financial media networks (FMNs), a trend we expect will continue.

PayPal is rethinking its growth strategy amidst market turmoil and slower-than-anticipated growth. All eyes are on the original fintech and payments powerhouse as it moves in a new direction; its strength in the market affects every part of the payments value chain.

Discover the dynamic shift toward digital wallets in the US and the UK in the latest podcast episode of "Behind the Numbers: The Banking & Payments Show." Delve into the compelling discourse on how younger generations' move to digital is rendering traditional wallets obsolete. Join host Rob Rubin, our US-based analyst Tyler Van Dyke, and UK-based analyst Carina Perkins as they unravel trends in digital transactions for dining, shopping, and ID verification. In the "For Argument's Sake" section, we dissect the fierce competition for market dominance among industry giants like Apple and Google, established players like PayPal, rising star Paze, and potential disruptors. Tune in for a forward-looking conversation and hit subscribe for the latest insights. Key insights: - Youth-led shift: Analysis reveals a robust trend among younger consumers pivoting to digital wallets for everyday activities, indicating a cultural and technological shift. - Market dominance debate: We uncover the strategic moves by tech titans and emergent challengers vying to capture the largest share of digital wallet users. - Cross-Atlantic perspectives: Insights from US and UK analysts present a diverse view on the adoption of digital wallets, offering a broader understanding of the global digital economy.

PayPal rolled out its own stablecoin, PayPal USD (PYUSD), and Revolut is reportedly preparing to launch one as well. Stripe also began supporting stablecoin payments this summer. Our take: Consumers lack incentives to adopt stablecoin payments, but there is a strong argument for stablecoins to be used in business and commercial payments.

The US-based payments player launched the PayPal USD (PYUSD) stablecoin in 2023. But a year in, adoption of the stablecoin remains limited. Revolut will likely face similar challenges. Our take: Revolut’s stablecoin may also face a profitability challenge given its timing.

PayPal has also tried to grow Pay with Venmo to monetize the peer-to-peer (P2P) app. Our take: Cash App Pay already has a long way to go to catch up to established competitors like PayPal, but the crowded field of buy buttons will make it even harder for Cash App Pay to gain significant adoption.

It finally allowed direct USD transactions between the two platforms in April 2024, when it enabled Visa+ on Venmo and PayPal. At the end of the day, a win for Venmo is a win for PayPal, but supporting a thriving Venmo ecosystem has clearly come at the cost of growing PayPal-branded mobile P2P volume in the US. Sources. Cash App. CNET. NBC News. PayPal. Venmo. Visa. Zelle.

PayPal has also been broadening the stablecoin’s payment use cases to boost adoption. PYUSD can be used to make transfers for free between the PayPal and Venmo apps. Users can also send PYUSD to compatible external wallets for a fee. In March, it began offering fee-free remittances via Xoom using the stablecoin.

PayPal has hired Mark Grether, who oversaw Uber’s entrance into advertising, to run the operation. PayPal’s approach to customer data appears less conservative than Chase’s. For one, PayPal has not confirmed whether advertisers will gain direct access to its first-party data as part of the new venture.

The complaint alleges that Visa feared that digital platforms like Apple Pay, PayPal, Square, and Cash App had “network ambitions” that could disintermediate the payments network. Visa saw Apple Pay, specifically, as an “existential threat” to its debit business.