Despite CEO’s assertions, PayPal is no Yardstick for growth or stability

PayPal-is-no-Yardstick-for-growth-or-stability-min

It’d be easy to assume that the world teeters on the brink of economic disaster. The United States’ trade war with China continues unabated after recent talks were rain-checked – with no fresh date on the calendar just yet. The threat of a no-deal Brexit has Britain facing recession, while examples of catastrophic inflation, bust tourism industries, and civil unrest worldwide seem like the cherry on a cake melting in the midday sun.

Yet, despite all the evidence to the contrary, one man remains optimistic about the US economy – in particular, PayPal CEO Dan Schulman.

<iframe src=”https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2FPayPalUK%2Fposts%2F2056303777713238%3A0&width=500″ width=”500″ height=”397″ style=”border:none;overflow:hidden” scrolling=”no” frameborder=”0″ allowTransparency=”true” allow=”encrypted-media”></iframe>

Bullish US Economy

In a conversation with CNBC in November 2019, Schulman indicated that spending activity among its customers was strong, a situation he suggested was somewhat representative of US economic strengthoverall: we’re pretty bullish about […] the economy”, Schulman said. However, while it’s not easy to find per-country figures for PayPal usage, the platform’s membership seems to be quite a poor metric for economic stability or growth. Instead, it’s likely to be representative of something much more personal to PayPal: its own success.

PayPal currently operates in more than 200 countries worldwide, with its recent popularity in the iGaming niche coming as a boon to the platform. Canadian casino review and comparison portal Feedback.casinonotes that its one of the most popular options for making payments in CAD alognside Interac and Instadebit. PayPal is also experiencing significant growth in Chinese markets and continues to push mobile payments to gain ground on leaders Apple, Google, and Samsung. The PayPal mobile app is notably the only solution that works with all manufacturers’ devices.

But as a yardstick for predicting economic conditions, PayPal is not engrained enough in the day-to-day life of spenders to be useful to analysts.

Chance of Recession

If we use Canada as an example, a country that had 6.4m PayPal usersamong its 35m people (both 2016 figures), we can assume that around 20% of many Western countries’ populace had a PayPal account three years ago. PayPal’s global membership has grown an average of 9.8% per quarter since Q1 2018, according to Statista, which gives us a ballpark figure for PayPal usership in Canada of 20-30% of the population in 2019. The number of active, frequent users is likely to be markedly lower though, as is the case with everything from video game accounts to online newspaper subscriptions.

The North American economic story is still unfolding though and Bloomberg currently has the US’ chance of falling into recession within the next 12 months at 26%. Consumer sentiment and trust is low as well and could fall further pending a resolution to the US-China trade war, not to mention the November 2020 US election and the UK general election in December, which could see leadership in the first and sixth largest economies in the world change hands. Trade tensions are reportedly the number one concern for people surveyed by the University of Michigan in October too.

All the above has Wall Street nervous so, while it’s good news that PayPal is not seeing a slump, the company is perhaps looking in all the wrong places.

Facebook
Twitter
LinkedIn
Email
Is it possible to get an A for a 5-paragraph essay assignment in 1 hour? We can safely say yes, a student can get an A+ mark if he turns to EduJungles


staycation

The ultimate guide to planning a long family staycation in Canada

To guarantee that everyone has an amazing time, careful planning is necessary when organizing a lengthy staycation. Here’s the ultimate guide to planning your family staycation in Canada. Canada, with its vast landscapes, diverse cities, and rich cultural heritage, offers endless possibilities for a memorable family staycation. Whether you’re exploring the stunning natural beauty of

Meal kits

Cost vs. Convenience: Analyzing meal kits and traditional cooking

In this modern world and modern times, convenience often takes priority over cost, especially when it comes to food. Meal kits and traditional cooking represent two different approaches to home dining, and each of them has advantages and disadvantages. Analyzing these methods through the lens of cost and convenience provides insight into why individuals might

Condo renovations

Condo renovations Dos and Don’ts: Expert Tips for a Successful Project

Embarking on a condo renovations journey can be both exhilarating and daunting. Imagine transforming your living space into a stylish haven that reflects your personality and meets your needs. While exciting, the process can be full of challenges and unforeseen hiccups. That’s why we’ve gathered some condo renovation dos and don’ts from the experts to

Terrific Hair

Terrific Hair Means Tamanu – Earth to Body

Curly, straight, thick, thin, kinky or silky, tamanu loves and makes terrific Hair.  And scalps. Nutritionally dense yet gentle, tamanu is an effective and versatile nut oil. It stimulates, helps promote growth. prevents hair loss, reduces scalp itch and irritations and adds a natural sheen! Make tamanu a part of your hair and scalp care

Understanding the 4 legal process after a DUI Crash

A single mistake can have serious consequences, especially when driving under the influence. The aftermath of a DUI crash extends beyond physical harm and property damage. It involves a complex legal process that may feel overwhelming. As a responsible citizen, it’s vital to grasp the legal system and your rights in such situations. This blog

personal injury lawyer

Pedestrian accident: How a personal injury lawyer can help you

Accidents involving pedestrians can be life-altering. You could be walking down the street or crossing a street. A vehicle’s sudden impact can change everything right away. If you’ve found yourself in such a situation, you might be wondering how to move forward. This is where a personal injury lawyer steps in, offering crucial help and

Mtltimes Subscription

The latest on what’s moving Montreal and the world – delivered straight to your inbox