Paypal has had an interesting few months following its spinoff from eBay in July. The company had the misfortune of coming public right before an ugly period for the stock market. After bottoming around $30 in late August, it has since rebounded 15 percent from its lows, prompting Jim Cramer to take a closer look.
“I’m still a big fan of Paypal the company, which is why we own this one for my charitable trust,” the “Mad Money” host said.
With Paypal in the intersection of the hottest area of digital right now — mobile and credit — Cramer sat down with the company’s CEO Dan Schulman to learn more about how it plans to dominate the space.
“The way I like to think about Paypal is it’s in the middle of the digital revolution that is happening right now”
Schulman said that Paypal is solely focused on its mobile and digital platform right now, with over 173 million people across the globe that use its platform and more than 13 million merchants. Being an independent company gives Paypal a tremendous advantage to be able to focus on mobile and digital.
“The world is moving towards mobile right now. The distinction between offline and online is blurring,” Schulman said.
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In 2013 Paypal acquired payment gateway Braintree, which included the popular app Venmo. Since that time Venmo has rapidly grown, particularly with the millennium generation to pay, manage and move money.
“Venmo is one of the jewels of Paypal,” Schulman said.
The CEO also noted that Black Friday this year was the first time that more people shopped online than in store. He considered it to be a turning point for retail, where mobile is the way that people have started to shop, which plays exactly into the strengths of Paypal.
“The way I like to think about Paypal is it’s in the middle of the digital revolution that is happening right now,” Schulman added.