Digital payments could become $100 trillion market, says PayPal CEO
Could digital payments become a $100 trillion market? PayPal CEO Dan Schulman thinks so, according to CNBC.
"It could be, you know, a $100 trillion market," he told the outlet. "That's sort of the market — total addressable market — we're playing into. We may have, like, 1-2 percent share of that market today.”
"We live in the space of digital commerce and digital commerce is exploding still around the world. There's an explosion in digital commerce and we're riding that wave. What we see is pretty positive."
"We live in the space of digital commerce and digital commerce is exploding still around the world," he said, speaking of Venmo’s impressive growth year-over-year. "There's an explosion in digital commerce and we're riding that wave. What we see is pretty positive."
Schulman touts the partnerships that Venmo has cultivated with companies such as Facebook, Alphabet's Google, Microsoft and Alibaba as pivotal to its strategy.
"People are thinking about how can they use technology to better serve customers," Schulman said. "I think it's going to be less and less about how does one company hyper-serve customers. I think the new way of the world going forward is how do companies take the best of their platforms [and] put them together to better serve companies."
He did not shy away from talk about competition between Venmo and Zelle, that payments network owned by several major banks. Schulman explained the difference in user behavior on these platforms, describing the average Venmo transaction as about $50 and occurring as frequently as five times a week, compared to Zelle users sending $250 about once a month.
"P2P, or peer-to-peer payments, is exploding in the market. It's a multi-hundred-billion-dollar marketplace. This will definitely not be a winner take all," Schulman said. "I think the two will live side by side and it won't be a winner take all."