PayPal to produce independently operated the first answer: additions, 4 million

PayPal CEO Dan·shuerman (Dan Shulman), the company signed an agreement with major businesses and smart phone applications, and offer free P2P payments defended the strategy, as investors expressed concern that such measures could hurt the company's profits, sending its shares down.

PayPal Express, operating in the company independent from eBay in the first quarter, total number of accounts increased 4 million, reaching 173 million paid rose 20%, reached $ 69.7 billion.

But investors are worried about the PayPal conversion rate fell, this pointer is a measure of each payment PayPal platform from getting income. The pointer to 3.24% in the third quarter, down from 3.39% a year ago. PayPal shares fell in after-hours trading on Wednesday to 7.8%.

PayPal's strategy is to attract more customers and businesses, and provide extension services to respond to the Square and Stripe startup competition, as well as the challenge Apple and Google, the digital wallet. Even JPMorgan Chase on Monday to join the digital world war.

PayPal stores and popular Smartphone application processing payments to larger, but by each payment received less income, mainly because of the big customers have stronger bargaining power. When the Square revealed after losing cooperation with Starbucks, the disadvantage of this strategy will emerge.

"The decline in conversion rates possible, over time, as large retailers and P2P payment enterprises is increasing. "The United States investment bank Wedbush Securities analyst jier·luliya (Gil Luria)," said, however, fell more than expected in the first quarter, could lead to investor concerns. ”

Shulman said that PayPal's strategy is to increase in consumer transactions and remittance activities, the rate of exposure. In addition to process the payment transactions, PayPal payment platform also provides P2P Venmo, user-friendly smart phone to split the fees, rents and other charges.

Schulman said most Venmo transactions are free of charge, it has millions of users, most are less than 30 years of age, is not a PayPal user. Venmo as the company attract customers and sell goods at a loss. He said PayPal plan lets Venmo accounts PayPal Merchant shopping this quarter. If successful, also expanded the project in 2016.

"If our strategy is successful, conversion rates will decline. "Shulman said," this is the mode of payment. ”

Shulman's challenge is to highlight the differences between PayPal and competitors. In addition to providing small micro-enterprise lending, PayPal also adopted in July of this year of $ 890 million bid for Xoom into the international money transfer business. "We are not just a button on the Web site. "Mr. Shulman said.