PayPal has announced the launch of innovative artificial intelligence-driven products and a one-click checkout feature, marking the initial major move under the leadership of Chief Executive Alex Chriss. Chriss, who assumed the role in September, aims to breathe new life into the payments giant and leverage the growing investor enthusiasm for AI, which has recently propelled US stock markets to record highs.
The unveiling of these new products represents a strategic push to tap into the potential of AI, a trend witnessed across various industries. Investors are closely watching Chriss, formerly a senior executive at software company Intuit, with the expectation that he will reverse PayPal’s declining stock performance, down over 22% since January 2023 due to underwhelming margins.
Chriss has labelled 2024 as a “transition year” for PayPal, emphasising the commitment to expanding revenues beyond transaction-related volume. In an interview with Reuters, he highlighted the significant opportunity AI presents for the company, stating, “The data that we have and our ability to actually see what people have bought and know what merchants are trying to target, that’s where I think AI is the huge opportunity for us.”
Following the announcement, PayPal shares experienced a 4.6% dip.
One of the key features unveiled by PayPal is a platform utilising AI to enable merchants to reach new customers based on their previous shopping history, leveraging data from approximately half a trillion dollars’ worth of global merchant transactions processed by the company.
Merchants will also have access to a separate AI-based tool named “smart receipts,” allowing them to recommend personalised items to shoppers through email receipts, accompanied by a cashback reward.
In addition to these advancements, PayPal is introducing a “one-click” checkout feature called Fastlane, which has shown in early testing to accelerate checkout speeds by nearly 40%. The company also revealed new features for Venmo business profiles.
Source: Business Today
