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Its strengths as a mobile wallet include passwordless sign-in, payment method optimization, and tokenized security measures鈥攁ll key factors to challenging the likes of Apple Pay and PayPal. But Paze still needs to expand both sides of its network. Until recently, Paze relied on partnerships with individual merchants to gain digital wallet market share.

Perplexity, in partnership with PayPal, will soon enable US consumers to make purchases, book travel, and more without leaving its interface. Shoppers can ask Perplexity to find products and then use PayPal or Venmo to check out鈥攃ompleting the entire process including payment, shipping, and invoicing鈥攚ithout needing to enter a password or any other manual inputs.

PayPal. PYMNTS.com. Stripe. Target. Trustly. Visa. Walmart. Worldpay.

How PayPal is forging ahead: During PayPal鈥檚 investor day in February, the company rebranded its B2B offerings under PayPal One. PayPal is betting it can better position itself as a B2B company by rebranding鈥攖herefore deepening its merchant relationships and boosting its overall business.

Perplexity made PayPal its exclusive payment partner, streamlining all AI query-related shopping through PayPal or Venmo. Amazon is testing 鈥淏uy for Me,鈥� which employs agentic AI to facilitate purchases on the customers鈥� behalf. Visa鈥檚 Intelligent Commerce employs AI agents to buy items or services based on a customer鈥檚 pre-set preferences.

PayPal also is trying to expand the use of its own stablecoin, PYUSD. It recently partnered with Coinbase and also started offering a yield 鈥渞eward鈥� on PYUSD balances. A consortium of traditional banks including JPMorgan and Bank of America is also considering launching a stablecoin to speed up transactions and avoid disintermediation if crypto takes off as a bona fide payment method.

Western Union has become the latest financial company to launch a media network, joining the likes of Chase and PayPal. 鈥淭he biggest advantage [financial media networks] have is just breadth. So, unlike a retail media network, they capture the entire spending history that a customer has,鈥� said our analyst Maria Elm on an episode of our Behind the Numbers podcast.

PayPal rolled out a contactless payments presence in Germany this month. What鈥檚 at stake: More wallets competing on the iPhone are set to snap up Apple Pay鈥檚 established market share. Apple Pay is the second-most-used digital wallet in the UK for online purchases, according to our forecast.

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

After a challenging Q1, PayPal looks to be shifting its strategy to focus on high-growth areas. Business areas like Xoom might not fit.

The strategy: While Venmo is known as a peer-to-peer (P2P) payments provider, PayPal is continuing its long fight to make the app a full-service platform to improve its profitability. Letting users add the debit card to their mobile wallets will likely increase Venmo鈥檚 payment volume on everyday transactions, especially among digitally native Gen Zers who favor using mobile wallets for payments.

This widespread adoption of digital remittances stems partly from greater availability as digital providers like PayPal-owned Xoom, Revolut, Wise, and Remitly have grown. Remittance providers can win over prospects through lower costs and faster speeds. Half of US remittance users would consider switching to a new provider if it offered lower fees, per a June 2024 MoneyGram survey.

JPMorgan Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They were the most high-profile FIs to do so yet鈥攕ignaling that FMNs could be a meaningful new revenue stream for the financial services industry. FMNs will remain a niche鈥攜et massively growing鈥攕pace.

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

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

Vendors can get ahead by offering young consumers鈥� preferred digital wallets, like Apple Pay and PayPal, at checkout. For in-store shopping experiences, providing a self-checkout will be key to meeting shoppers where they鈥檙e at. For maverick large retailers, options like 鈥楯ust Walk Out鈥� tech might represent opportunities to get ahead of the curve.

Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They鈥檙e the most high-profile FIs to do so yet, signaling that FMNs could be a meaningful new revenue stream for the financial services industry. FMNs will remain a niche but massively growing space.