Host of Mad Money, Jim Cramer had a talk show with the PayPal CEO Dan Schulman about the international potential in the technology. Shculman has stated that international states like India are helping to improve their paying systems such that accounts and credit cards are being replaced with online solutions.
He believes in digitalizing the cash. “The entire financial system’s ecosystem is moving, more rapidly than ever before, away from cash and towards digital payments because of the explosion of mobile phones,” Dan Schulman stated to with Jim Cramer, host of Mad Money.
PayPal having 227 Million subscribers with 65 % being outside of the USA, it has grabbed this opportunity around the globe.
PayPal has also added 8.6 million new subscribers, which was a record that came into being a CEO and president in the year of 2014. India and China have also gave in to this rapid digitization of cash, and have preferred it over traditional methods of payment such as checking into accounts or withdrawal from credit cards.
“India [is] really going through demonetization right now,” Schulman stated. “They really never had point-of-sale terminals, credit card[s], and what they’re trying to do now is do everything through digital.”
The proud CEO has worked in American Express before he joined PayPal,and improved the digitization capacity for different nations and clients.
As Dan Schulman said, “There aren’t middlemen in between to take a part of the transaction. There’s less corruption and graft that can go on. And so for government benefits, that kind of thing, there’s much less leakage if it can go directly from the government right into a digital wallet of the consumer. And so you’re seeing leapfrogs over what was credit card infrastructure or checking.”
PayPal has broken up with the parent company, called eBay in the end of January and shook hands with Baidu, a Chinese import company which reaches out to Chinese customers all around the world. It is also in partnership with Alibaba, the e-commerce giant and allows international users to shop on this website without any hassle.
Schulman stated to Cramer, “I think that’s the power of a two-sided network and an open platform: you’re able to do ecosystem partnerships that you never could’ve imagined years ago.”
Since more than half of its revenues are generated out of the US, it benefits from small businesses in US as well as internationally.