Paypal, JPMORGAN CHASE JOP -LA FASTLANE CHECKOUT | Paymentssource

PayPal rests on artificial intelligence to counteract competition in mobile wallets and card networks, a strategy that requires a distribution impulse from large partnerships.

The payment company said on Wednesday JP Morgan Payments will provide the Fastlane Paypal checkout system to the UK and Europe’s commercial customers. It was one of the several movements that Paypal announced on Wednesday, including the reorganization of its payment brands and an extended collaboration with the Commercial Technology Company to combine personal checkout and e-commerce.

Paypal enters the third year of a transformation strategy Under CEO Alex Chrisswho has focused on improving its ability to sell products to traders and consumers while The development of adjacent business lines such as logistics to reverse a decrease in stock in 2022 and 2023.

Paypal is facing threats from rivals like Square; Mobile wallets such as Apple Pay and Google Pay; and traditional card networks. These companies have improved their ability to provide payments with multiple channels and non-payment services, such as artificial security and marketing with intelligence and customer service.

“We are transforming from a company in a company,” Chriss said during a presentation of investors on Tuesday. The company has a data “gold mine” and over 100 artificial intelligence algorithms that it can use to better inform how it develops products and involves traders and consumers in a more adapted way, said CEO Paypal. “There are technological changes that create opportunities for Paypal,” Chriss said.

Fastlane is a major part of the PayPal plan. Fastlane It is based on the payment activities of consumers, including channels, applications, the use of marketing incentives and other factors, to recommend a payment option that uses the technology you have developed by PayPal.

Fastlane is designed to act as a Payment facilitator For consumers, or a way to direct transactions to the fastest, smallest or better economically possible option. PayPal also uses fastlanes to stimulate customer involvement using data troops and to adapt product recommendations and other information that helps shopping.

While PayPal has almost 400 million consumer accounts and 40 million merchants’ accounts, they go to other companies to provide scale to distribute new tools. The PayPal Fastlane partners at the launch included the Bigcommerce Electronic Trade Company, with other partnerships, including Bold Commerce, a digital electronic trade marketing platform, among other companies.

JP Morgan Payments combine treasury services, trade and working capital, card and traders’ service capabilities to help customers pay customers or employees in different coins. Processes almost 10 trillion dollars daily, operating in over 160 countries and over 120 coins. JPMORGAN He did not answer questions about the size of PayPal partnerships.

In addition to the Fastlane scaling, PayPal also tries to make their product menu more efficient to make them easier to find and access. PayPal has reorganized most of its existing companies under a single brand called PayPal Open.

Open includes services for businesses, developers, AI analyzes, fraud protection, now/pay later/other products from more than 140 countries and coins. Paypal has kept the Venmo transfer application, which he considers a recognized popular consumption product, as a stand -alone brand. PayPal Open will be introduced globally in the next year.

“We need to think about the end-to-end trade,” Chriss said during investor presentation, emphasizing Paypal’s need to work as a single platform.

In another movement announced on Tuesday, PayPal has expanded its partnership with the verifone payment technology company to combine the payment technology in the verifone store with PayPal Payment processing and electronic trade technology. This is designed to provide traders with a “flexible and scalable” product by Omnichannel payments, according to paypal.

These movements are trying to approach PayPal challenges, such as stimulating the company’s brand checkout volume. Paypal in it The earnings in the fourth quarter The volume of brand payments has only increased slightly in the fourth quarter of 2023, including a decrease in volume outside American analysts have suggested that any progress will be slow

“Any benefits from the continuous efforts to improve the brand experience and to bring the latest integrations to a wider traders is probably more dated,” Morgan Stanley said in a research note. On Tuesday, Chriss said Paypal is about to increase the double growth of digital transactions next year. Paypal’s stock slipped about a percentage on Tuesday.

“The growth of disappointing brand checkout in the fourth quarter makes it unlikely that (PayPal Open) get a credit in advance (from investors),” Jeffries Analysts said in a research note.

During recent winnings calls, Chrissie Frequently demanded “patience”, while the company’s changes show tangible results.

“We do not expect this product to contribute significantly to the gross profit in the next two years, especially since we believe that monetizing will take time, because Paypal seems to lead to adoption and we also believe that the economy from incremental conversion increases And the prices will be limited, “said Morgan Stanley analysts in a research note.

Morgan Stanley also suggested that Paypal could have challenges in using AI and related technology due to traders’ concerns about the impact of innovation on marketing and confidentiality.

“In general, we do not expect to be positive about any comments related to the use of AI and data on PayPal consumers to optimize promotional activity and generate request on paypal applications. We believe that traders have been negatively sensitive to suppliers. of payments and partners who use data transactions to run promotions, especially for a company from Reach Paypal, ”said Morgan Stanley.