StockOpine's avatar
$40.8m follower assets
$PYPL Venmo - Goldman Conference
“First of all, to your point, we're doing almost $0.25 trillion of TPV through Venmo, close to 90 million active accounts, 55 million active monthly accounts. So it's an extremely large, highly engaged base of customers that are now driving over $100 million of revenue every month.” Dan Schulman, CEO

  • That is a run rate revenue of $1.2B, i.e. 33% higher that 2021 revenue of c.$900M.

“creating teen accounts that will open the addressable market for Venmo by some 20 million or 30 million incremental people inside the U.S., getting ready and looking at international expansion there”, Dan Schulman, CEO

  • International expansion could be huge. Any incremental increase in TAM (teen accounts) is a bonus.

“And then obviously, we've got Pay with Venmo, Amazon. Amazon is 30% of U.S. e-commerce-ish, think about the number of merchants that we would have to sign up here in the U.S. to get that same scale for Pay with Venmo, it would be multiple, multiple millions.” Dan Schulman, CEO

  • Self explanatory and was one of the significant opportunities we noted in our deep dive. It shall be noted that $PYPL and $AMZN are working on the final technical issues.
Dissecting the Markets's avatar
Hi @stockopine, I was wondering what you thoughts were about the horrible customer service that PayPal has. There are many places on the internet that say that PayPal has horrible customer service. This article sums it up:
Karan Malhotra's avatar
@dissectmarkets seems like this person had a bad experience, but why is that deemed to be universal? How do you reconcile them being so terrible yet having >1 trillion of TPV across 420 million accounts? To add a personal anecdote, I was sure I lost access to my PayPal account but customer service very kindly helped me to recover it, but I don’t claim it’s the best customer service in the world just on my personal experience
StockOpine's avatar
Thank you for sharing this @dissectmarkets . We noted that recently there are various negative reviews beyond the one you shared. Obviously, this is a cause of concern since a 'terrible' experience will force customers to look elsewhere. On the other hand, @karan10489 comments about TPV and active accounts make sense. If a decline is observed in either of the two, definitely we will need to revisit our position.
Conor Mac's avatar
@karan10489 From personal experience, the service and sometimes the product itself (across both personal & business use) can be cumbersome when first opening an account, but I have found they are usually resolved quite quickly. The fees are quite high so for business uses I try to avoid them when I can. But there is no disputing that sometimes PayPal is like the only choice consumers have to transfer money. Not sure how sustainable being the last resort is, but it has been going well so far.
StockOpine's avatar
@investmenttalk what would be the overall scoring you assign on PayPal based on your experience?
For sure, being the last resort will not be sustainable especially with so many fintech companies popping up.
Conor Mac's avatar
@stockopine In my personal experience, the actual product and service, a solid 7 out of 10. It solves a number of issues for me when taking USD payments from the States. The fees suck, but hey.
StockOpine's avatar
@investmenttalk decent score. No other option right? 😅
Karan Malhotra's avatar
@stockopine I think the key is it just works and has a full service suite, lack that infographic that recently went viral. And so you get a single solution that's good enough for most needs. Slap on trust and a known brand and you get a multibagger with massive penetration. There are certainly better apps out there on individual features but there are also many certainly worse. Like I think they're good expensive but I trust them when dealing with parties I don't. That's worth something
Braden's avatar
That data 😍