PayPal’s new CEO, Alex Chriss, has outlined his priorities for transforming the digital payments company into a more profitable growth enterprise. Taking over the role just weeks ago, Chriss acknowledged the challenges ahead and expressed his commitment to redirecting the company for more profitable growth by streamlining operations and controlling costs.
Key points from his announcement:
1. Cost Control: Chriss emphasised that PayPal’s cost base is too high, and it is slowing down the company. He is currently evaluating the most profitable growth priorities and aligning resources accordingly to make PayPal leaner, more efficient, and more effective in driving innovation and impact for customers.
2. New CFO: To support the company’s new approach to expense management, PayPal has appointed a new Chief Financial Officer (CFO), Jamie Miller, effective from November 6. Miller has held prominent CFO roles at firms like EY, Cargill, and General Electric.
3. Q3 Earnings: PayPal’s net income for the third quarter decreased by 23% to $1.02 billion, while revenue increased by 8.3% to $7.4 billion.
4. Emphasis on Checkout Experience: Chriss listed the remake of the checkout experience as his top priority, followed by a focus on serving small and mid-sized businesses. He also mentioned the opportunity to leverage customer data for more personalised services.
5. Expanding Services: For larger businesses, the focus is on selling more services, such as payouts, fraud management, chargeback automation, and foreign currency exchange.
6. Talent Acquisition: Chriss acknowledged the need for new talent to achieve these goals and plans to share a more detailed strategy with analysts in February during the next earnings call.
Chriss’s appointment as CEO comes at a time when PayPal aims to increase its profitability and navigate a shifting competitive landscape in the digital payments industry. The company has been reevaluating its strategic focus to deliver more value to its customers and shareholders.