PayPal Holdings Conference Summary Company Overview - **Company**: PayPal Holdings (NasdaqGS:PYPL) - **Date**: November 13, 2025 - **Key Speaker**: Diego Scott, General Manager of PayPal's Consumer Group Core Industry Insights - **Consumer Strategy**: PayPal's consumer strategy is built on three pillars: 1. Pay Everywhere 2. Pay Your Way 3. Driving Value for Consumers [1][2][3] Key Points and Arguments Pay Everywhere - **Omnichannel Expansion**: PayPal aims to enhance its omnichannel presence, allowing consumers to use PayPal both online and offline, breaking the traditional perception of PayPal as an online-only payment method [3][4]. - **Debit Card Growth**: The company has repositioned its debit card offering, achieving 6 million new first-time users (FTUs) and a 70% year-over-year growth in total payment volume (TPV) on debit cards [4]. Checkout Experience - **Frictionless Checkout**: PayPal has upgraded its checkout experience, with 25% of global transactions now utilizing the new integration, leading to improved conversion rates of 2-5 percentage points [7][8][10]. - **Biometric Integration**: The introduction of biometric features is aimed at reducing friction in the checkout process [8]. Loyalty and Rewards - **Smart Wallet Initiative**: PayPal is developing a "smart wallet" that integrates various financial products, enhancing user experience and driving monetization through increased product usage [11][12][13]. - **PayPal Plus Program**: A new rewards program launched in the U.K. allows users to earn points across multiple financial institutions, aiming to simplify the rewards process for consumers [22][24]. Buy Now, Pay Later (BNPL) - **Market Position**: PayPal's BNPL service is projected to generate $40 billion in TPV this year, with a 30% increase in TPV for customers using BNPL [17][18]. - **Geographic Expansion**: The BNPL service has recently launched in Canada, with plans for further geographic expansion [18]. Venmo Insights - **Revenue Growth**: Venmo's revenues are growing at 20%, with a goal to exceed $2 billion by 2027. The platform is focusing on monetization strategies targeting its affluent user base [32][35]. - **User Engagement**: Venmo has crossed $1 billion in TPV, growing 40% year-over-year, with significant increases in funds being brought into the platform [34][35]. Future Initiatives - **Agentic Commerce**: PayPal is investing in Agentic Commerce, aiming to be a leader in the integration of AI and shopping experiences [50][51]. - **Stablecoin Interest**: There is growing interest in stablecoins among consumers and merchants, particularly in regions with unstable currencies [58]. Additional Important Insights - **Consumer Trust**: PayPal's established trust and security are seen as critical factors in its ability to succeed in the evolving payment landscape, especially with younger consumers [56]. - **Interoperability**: The integration of Venmo and PayPal is being explored to enhance user experience and operational efficiency [42][43]. This summary encapsulates the key insights and strategic directions discussed during the PayPal conference, highlighting the company's focus on expanding its consumer offerings and enhancing user engagement through innovative payment solutions.

Core Insights - Zerohash has appointed Aaron Karczmer and Danny Rosenthal to its Boards of Directors, bringing extensive experience in payments, regulation, and financial infrastructure to support the company's growth [1][2][3] Company Developments - Aaron Karczmer, former Chief Enterprise Services Officer at PayPal, joins the zerohash llc Board, which oversees US-regulated custody and money movement [2] - Danny Rosenthal, former CEO of Apex Crypto, joins the zerohash liquidity services Board, focusing on the firm's global liquidity stack [2] - The new board structure reflects zerohash's commitment to regulatory oversight while scaling operational and product capabilities globally [2] Industry Context - Edward Woodford, Founder and CEO of zerohash, emphasized the importance of operational scale and regulatory trust as global finance converges with digital assets [3] - Both new board members expressed enthusiasm about the pivotal moment for institutional payments and digital assets, highlighting the transformation driven by high-speed settlement and regulatory clarity [3] Recent Achievements - Zerohash has made significant strides in payments and stablecoin innovation, securing MiCAR authorization in Europe and partnering with companies like Worldpay and Public.com [3] - The company closed a $104 million Series D-2 fundraise to accelerate its global growth [3] Company Overview - Zerohash is a leading infrastructure provider for crypto, stablecoin, and tokenized assets, offering an API and embeddable dev-kit for various financial solutions [9] - The company operates regulated entities in 51 U.S. jurisdictions and has a global regulatory footprint across multiple regions including the EU and Latin America [9]

Core Insights - PayPal is relaunching its services in the UK with a focus on creating a "unified payment experience" for consumers [2][3] - The new PayPal+ loyalty program allows British customers to earn points on purchases, with every 1,000 points equating to £10 [4] - The relaunch follows a restructuring of PayPal's operations in the UK nearly two years after Brexit [3] Product Offerings - The PayPal+ loyalty program is designed to enhance shopping experiences by offering no fees where competitors charge and a new debit card that provides 10 times more points [3] - PayPal is expanding its Pay-in-4 buy now pay later (BNPL) solution into Canada, indicating a broader strategy to enhance payment options [4] Technological Integration - PayPal is leveraging AI to boost account growth and consumer spending, including integrating its wallet into OpenAI's ChatGPT for enhanced payment processing [5] - The company is introducing agentic commerce services that allow merchants to sell across multiple AI platforms [5] Financial Performance - PayPal's capital programs are crucial for supporting small businesses, with the company purchasing approximately $1.6 billion in merchant receivables during the nine months ended September 30 [6]

Core Insights - Investing in TON (CRYPTO: TON) is viewed as an indirect investment in Telegram, which is not publicly listed [1] Group 1: Utility and Functionality - TON is positioned as a utility token for payments, facilitating instant cross-border transactions and potentially competing with major players like Visa, Western Union, and PayPal [2] - The selection criteria for tokens include specialized development teams, increased adoption, and scalability, all of which TON meets according to Scaramucci [3] Group 2: Market Conditions and Opportunities - Despite facing significant price declines from $750 to $220, Scaramucci sees this as a contrarian opportunity, projecting that TON could reach $10 as adoption increases [4][5] - The current altcoin market is weak, with altcoins trading at levels reminiscent of the 2022 FTX crisis, while Bitcoin is priced at $110,000 [4] Group 3: Decentralization and Legal Context - TON remains decentralized despite legal issues faced by Telegram founder Pavel Durov, who is under scrutiny in France [6] - Following news of Durov regaining his passport, TON experienced a surge of over 20% in value [6]

Core Insights - PayPal has launched "Pay in 4," a no-fee buy now, pay later (BNPL) solution for Canadian consumers, allowing them to split purchases between $30 and $1,500 into four equal, interest-free payments over six weeks [1][8] - The BNPL segment is experiencing significant growth, with PayPal's total payment volume (TPV) projected to approach $20 billion in 2025, reflecting over 20% year-over-year growth in Q3 2025 [2][8] - Strategic initiatives include a partnership with Blue Owl Capital to purchase approximately $7 billion of PayPal's "Pay in 4" loans and a 5% cashback offer for U.S. customers on BNPL purchases [3][8] Company Developments - PayPal's BNPL solution is expanding geographically, now available in Canada, with extended payment terms in Italy and Spain allowing up to 24 installments [4] - The company has seen a decline in share price, down 21.5% year to date, underperforming the broader industry and the S&P 500 Index [7] Financial Performance - PayPal's shares are currently trading at a forward 12-month P/E of 11.44X, significantly lower than the industry average of 20.65X, indicating a potentially undervalued stock [10] - The Zacks Consensus Estimate for PayPal's full-year 2025 EPS has been revised upward, suggesting a year-over-year growth of 14.6% [11]

Core Insights - PayPal Holdings reported transaction revenues of $7.52 billion in Q3 2025, reflecting a year-over-year growth of 6.4% and accounting for approximately 89.4% of its net revenues [1][8] - The growth in transaction revenues is attributed to the rise in online shopping and mobile payments, contributing to solid financial results for the quarter [1] Transaction Revenue Details - Transaction revenues primarily derive from fees charged to merchants and consumers for payments processed through PayPal's platforms, based on the Total Payment Volume [2] - Transaction margin dollars (TM$) for Q3 2025 reached $3.87 billion, exceeding management's guidance range and representing a growth of 5.9% on a reported basis [3][8] - Excluding interest on customer balances, TM$ increased by 7.1% to $3.55 billion [3] Business Segments Contribution - TM$ growth is driven by various business segments, including branded experiences, Payment Service Providers (PSP), and Venmo, with a notable rebound in the enterprise payments business contributing to this growth [4][8] Competitor Performance - Block's transaction revenues for Q3 2025 were $1.87 billion, up 9.4% year-over-year, representing 30.6% of its net revenues [5] - Payoneer Global reported total revenues of $270.9 million for Q3 2025, a 9% year-over-year increase, with revenues excluding interest income growing by 15% [6] Valuation and Estimates - PayPal shares have declined by 21.3% year-to-date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 11.44X, significantly lower than the industry average of 20.64X, indicating a cheap valuation [10] - The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward, suggesting a year-over-year growth of 14.6% [11]

Core Insights - PayPal is expanding its Buy Now, Pay Later (BNPL) service, Pay in 4, to Canada for the holiday shopping season, allowing consumers to manage cash flow without late fees or hidden costs [2][5] - The service enables shoppers to split eligible purchases between $30 and $1,500 into four equal, interest-free payments over six weeks, appealing to consumers amid economic pressures [5][6] - A significant portion of consumers (60%) who have not previously used BNPL would be encouraged to try it if there were no fees, indicating a demand for transparent payment options [5] Company Strategy - PayPal has been a trusted brand in Canada for over 15 years, and the introduction of Pay in 4 aims to meet the growing demand for flexible payment solutions [5] - The company emphasizes that businesses offering BNPL options can experience increased conversion rates and higher sales, particularly during peak shopping seasons [5] Industry Trends - The BNPL market is seeing increased consumer adoption as individuals seek to manage their finances amid rising economic pressures, with installment financing viewed as a budgeting strategy rather than excessive spending [6][7] - The appeal of fixed installment plans is heightened as credit card rates remain high, making BNPL an attractive alternative for consumers [8] - BNPL is functioning as a financial safety valve for households facing inflation and high interest rates, helping them maintain cash flow and spending stability [9]

Core Insights - Kia is introducing the next-generation Telluride SUV, positioning it as a new benchmark for the brand's design and ambition [1] - The first-generation Telluride has been a significant success since its launch in 2019, often ranking as one of the most in-demand vehicles in the U.S. [1] Design and Features - The 2027 Telluride will feature a larger, boxier, and more modern design compared to the current model, expected to arrive in U.S. showrooms in the first quarter [2] - The new front end includes a large grille surrounded by vertical headlamps, while the rear design is sleek and reminiscent of a Range Rover [2]

Core Insights - Venmo has launched a new rewards program called Venmo Stash, which offers cashback incentives to users who transact with their favorite brands and engage with Venmo's products, with cashback rewards reaching up to 5% [1][6] Group 1: Program Details - The Venmo Stash program allows customers to earn 1% cashback when spending their Venmo balance, increasing to 2% with auto reloads, and up to 5% with monthly Direct Deposits [6] - Unlike traditional cashback programs that categorize spending, Venmo's program requires users to select from curated bundles of brands, such as McDonald's and Amazon [7] - The program aims to keep users engaged within the Venmo ecosystem by incentivizing continued use of its services [1][3] Group 2: Market Context - The program targets younger consumers, particularly Gen Z, who show a preference for debit cards over credit cards, with only 39% of Gen Z frequently using credit cards compared to 51% of older generations [2] - Payment providers and retailers are adapting to this trend by offering more debit rewards and alternative payment options like "buy now, pay later" services [3] - Venmo's cashback program competes with similar offerings from rivals like Cash App, which also provides cashback incentives for its debit card users [4] Group 3: Future Expansion - Venmo plans to expand the Stash program in the following year to include rewards for payments made at merchants within its nationwide network [8]

Core Insights - JUST Capital has appointed six new members to its board of directors, enhancing its leadership and expertise in technology, research, communications, and corporate strategy [1][2][4] Group 1: New Board Members - Mehdi Ansari is a partner at Sullivan & Cromwell LLP, specializing in intellectual property and technology, particularly in AI [7][8] - Jonathan Auerbach has over 30 years of experience in technology and financial services, previously serving as Chief Strategy and Growth Officer at PayPal, where he led significant initiatives including the launch of PayPal USD [9][10][12] - Laxman Narasimhan, former CEO of Starbucks and Reckitt, brings extensive experience in leading global brands and driving digital transformation [14][15][16] - Franz Paasche, EVP of Corporate Affairs at Verizon, has over 30 years of experience in public affairs and communications, previously holding leadership roles at Columbia University and PayPal [19][20][21] - Stephanie Stahl is a seasoned business leader and executive coach with a strong background in marketing and strategy, serving on multiple public company boards [23][25][26] - Charles C.Y. Wang is a professor at Harvard Business School, focusing on corporate governance and valuation, with extensive research published in leading academic journals [27][29] Group 2: Organizational Goals and Developments - The new board members will support JUST Capital's transformation into an AI-powered corporate intelligence platform, set to launch its JUST Intelligence platform in 2026 [2][4] - JUST Capital aims to provide C-suites and boards with insights on stakeholder performance, competitive benchmarking, and strategic guidance on critical issues [4][5] - The organization has already improved job quality for 2.6 million workers and reached over 30 million Americans through media partnerships [5]