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Still, other wallets like Apple Pay and PayPal will need to prepare for Paze鈥檚 influence. They can do so by investing in some of Paze鈥檚 innovative features, like payment method optimization. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

The news: eBay added PayPal-owned Venmo鈥檚 buy button as a payment option at checkout on eBay.com and the eBay app, per a blog post. Consumers can pay for the purchases with their Venmo balances or Venmo-linked bank accounts, debit cards, or credit cards. eBay said accepting Venmo would resonate with Gen Z and millennials. Why this matters: eBay is trying to restore goodwill among its younger shoppers.

Why it matters: EPI is a coalition of major European banks, credit institutions, and other payments firms developing a unified, real-time payments system throughout Europe to challenge US-based players like Visa, Mastercard, and PayPal. While it鈥檚 had to scale back its ambitions due to financing concerns, wero could still shake up digital payments in Europe.

Based solely on brand trust, more Gen Zers would be likely to buy financial products and services from PayPal, Apple, and Amazon than from another traditional bank/credit union. Incumbents鈥� digital-only offshoots can鈥檛 compete with Gen Zers鈥� trust in Big Tech and retail giants.

PayPal is the most recent player to integrate its FMN with shopping. The network, which launched last month, plans to integrate its ads with the 30 million merchants who use its payment system. PayPal will be using first-party data to run off-site ads, which will make up 20.1% of all RMN ad spend next year, per March 2024 蘑菇AV forecast.

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.

PayPal is adding interoperability to its wallets to increase their utility and encourage use. Venmo recently added crypto transfers to other users and external wallets. PayPal launched this feature last year. And through a partnership with Visa+, PayPal will let Venmo and PayPal users to transact with one another later this year. Braintree.

The news: PayPal-owned Venmo now lets users transfer crypto assets to Venmo and PayPal accounts and to external wallets and exchanges, per a press release. Users can transfer Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. In Venmo鈥檚 Crypto tab, users can send their crypto by selecting another Venmo account or entering a recipient's external wallet address.

PayPal. The World Bank.

Paze could therefore cut into the market share of other digital wallets like Apple Pay or PayPal. Paze鈥檚 features will also likely become the new norm among wallets, forcing competitors to innovate to keep up. Our take: While Paze鈥檚 rollout is taking longer than we anticipated, its impact on the industry will still be impressive. It will become a fierce new competitor for Apple Pay and PayPal.

Their digital fluency means they prioritize a good app experience that includes popular payment methods like Venmo, PayPal, and Apple Pay. Educate Gen Zers about the purpose of insurance. Only 26% of Gen Zers have functional knowledge about the value of insurance, per a January 2023 TIAA Institute survey.

The complaint alleges that Visa feared that digital platforms like Apple Pay, PayPal, Square, and Cash App had 鈥渘etwork ambitions鈥� that could disintermediate the payments network. Visa saw Apple Pay, specifically, as an 鈥渆xistential threat鈥� to its debit business.

PayPal is addressing this by partnering with merchants to sell ads on their websites. "This really emulates some of the offerings that we see from Rokt and Fluent within the non-endemic digital advertising space," Marzano said. The company will allow brands to advertise across multiple retailer sites to boost share of sales, leveraging PayPal's visibility into cross-merchant behavior.

Last week, PayPal Ads formally launched at Advertising Week New York, leveraging first-party data from 400 million users and 225 billion transactions to offer advertisers cross-merchant and market share insights. Why it matters: As third-party cookie policies change, brands are seeking more control over their data usage to pave the way for targeted marketing, insights, and personalization.

But the social media platform may struggle to get its users on board unless it can differentiate the P2P service from its peers

And again, being able to leverage the data that PayPal is able to bring about a particular consumer who's going to see that ad, and how sales are looking from a cross-retailer perspective. Sara Lebow (18:51):. PayPal owns Venmo. Venmo has so much data.

If Apple makes this same proposal in the US, it could change the dynamic of the mobile wallet industry, giving competitors like Google Pay, Samsung Wallet, and PayPal a chance to fight over Apple鈥檚 share of users. Our take: Given Apple鈥檚 extremely loyal base of customers and the near decade it had to entrench Apple Pay habits, this likely wouldn鈥檛 impact Apple Pay too severely.

The bigger picture: Stripe鈥檚 slowing growth mirrors competitors like PayPal and Affirm, both of which have pivoted to trimming costs and focusing on more lucrative business areas. Stripe is similarly changing tack: Expanding its Amazon partnership should bolster processing volume, and diversifying could grow customer numbers and build new revenue streams.

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 report theorizes that Millennials and Gen Zers can鈥檛 tell a checking account from a payment tool because they鈥檙e used to paying with merchant apps, Apple Pay, PayPal, Klarna, and Venmo.

Wallets, from Apple to PayPal to Paze, are introducing passwordless authentication that can be applied across mobile operating systems.

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鈥檚 stablecoin may also face a profitability challenge given its timing.

The affinity for Big Tech firms as banking providers is even more pronounced among digitally native Gen Zers. 42% of Gen Z consumers surveyed in our Gen Z and Banking report listed PayPal as their most trusted banking partner, followed by 32% naming Apple.

The bigger picture: PayPal is trying to grow鈥攁nd monetize鈥擵enmo. To do so, it鈥檚 been pushing the Venmo Debit Card and Pay with Venmo: Monthly active users for both products grew about 30% YoY in Q2 2024. Over the past year, it鈥檚 also launched new features like Venmo Teen or Venmo Groups.

PayPal. PYMNTS.com. The Financial Brand. Treasury Prime.