With more than additional 72 million users in 2020, PayPal had a very transformative year. Also, the trend in online commerce heavily paced a substantial amount in overall payment volume. More importantly, PayPal added a few core features like Cryptocurrency investing, QR codes, and the option where users could buy now and pay later, in short, provide credit service.
The CEO of the Company, Dan Schulman said – “ We released more products and services in 2020 than in any previous year, and we will step up that pace in 2011” at the company’s fourth-quarter earnings call.
Below are the lists of five new products that PayPal is going to launch in 2021.
Paypal had already launched the cryptocurrency investing service last year in October. We can say, PayPal realized the excellent growth is achieved with the cryptocurrency service. And the management calls the same.
However, the company will not limit itself to the investing service only and expands its services to let the users buy, sell and hold cryptocurrency to new international markets that will help to rocket up the chances of investment in Users. Schulman has further plans to utilize the investing services and expand them to facilitate stock trading as well. This additional feature can turn the table of generating revenue for Paypal.
While PayPal seems a bit excited about launching its new service, the rival payment company Square doesn’t feel the same. If PayPal steps into the investing game, things will get difficult for the Square.
Back in 2017, after Square introduced bitcoin investing, the company gained a wide number of users. And when Square expanded to stocks last year, the company went far ahead of PayPal in the investing game. Today the company earns a major portion of its revenue through the users that invest through Cash App rather than peer-to-peer payments.
Now when PayPal decides to step into the investing game, with a large base of users, Paypal can expect a profit on a larger scale.
- Spending Cryptocurrency
Unlike the previous features where users could buy, hold and sell cryptocurrencies, PayPal is also going to launch the feature where its users can spend or use cryptocurrencies directly to buy products or as a mode of payment like that with cash. However, we don’t have to expect the service soon as Schulman said the feature will start rolling out later this quarter only.
Currently, people use cryptocurrency trading firms to buy, hold and sell their digital assets. And that is kind of complex. However, if PayPal introduces the spending cryptocurrency program, a lot of user bases will find it easy to use their cryptocurrency. This can result in an increment in the number of merchants who will accept direct payment in bitcoin or other cryptocurrencies.
The Cryptocurrency Trading firms charge fees for even small transactions and the exchange rates for transferring cryptocurrency to the local currency or international currency makes it tough to spend the cryptocurrency. If PayPal could eliminate this major problem, the company can potentially achieve more users.
- Enhanced bill pay
A strategic partnership between PayPal and Paymentus in early 2019 brings the bill payment service. The company can be seen growing quite an engagement in bill pay transactions over the last quarter of the year.
With Bill Pay, PayPal can enhance payments that it never had to get its hands on. The whole billing management system decides the take rate for billers and its standard take rates for retailers or merchants are much lower, which makes the overall cost lower as well.
To create Bill Payments, either ACH or a debit card is needed. To ensure fair billings, accounts cannot be created with a credit card.
CFO John Rainey also told analysts to focus on “transaction margin instead of taking rate” during the buy-side analyst call after PayPal’s third-quarter earnings report. Investors can expect to see the bill pay in consumer PayPal as in the first quarter of 2021.
- Budget and Savings Tools
This is something new in PayPal as well as in other wallets. The Budget and saving tools can help the users to track their funds and analyze their savings and expenses. We can assume that PayPal will make this service free for its users.
To get the report on their funds, users are most likely to store more funds in their PayPal wallets and spend them directly rather than loading them in the card payments.
This service provides the user a new way of analyzing their funds. As a result, most of the users can switch to PayPal from the traditional mobile banking apps where they only store funds.
- Honey’s Shopping Tools
Honey a shopping extension for browsers that will find coupons, promo codes, and discount offers with a single click.
The wallet company agreed to purchase Honey for $4 billion at the end of 2019. The coupon finder browser extension is now PayPal’s biggest acquisition ever. The massive integration of Honey with PayPal can be seen in 2021 when PayPal will add Honey’s shopping tools as a new feature.
With Honey’s help, now Paypal can include a wish list, or monitor prices, deals, coupons, and rewards within PayPal for honey users.
As of Schulman, users can get benefited from HoneyXPayPal as the use of Paypal in stores will automatically use an offer from Honey. According to Schulman, this can be the major reason for people to use PayPal both online and in stores.
Ultimately, on the merchant end, merchants can track their sales and can offer coupons and promo codes to specific demographics. This will give merchants a better hands-on increasing sales.