PayPal this week unveiled its digital wallet platform and vision for the future of PayPal and Venmo apps, according tomedia reports. The company said on its third-quarter earnings conference call that it plans to make substantial changes to its mobile app over the next year, including enhanced direct deposits, check cashing, budget tools, billing, cryptocurrency support, subscription management, buy-first/pay-after-you-go features, and Hoeny’s shopping tools.
While PayPal has said it brings Honey’s features to PayPal, CEO Dan Schulamn this time detailed how the platform, which they acquired last year for $4 billion, would be integrated into PayPal.
PayPal’s acquisition of Wie by Honey is understood to have brought in 17 million monthly active users. These users use Honey’s browser extensions and mobile apps to find the cheapest buying platform they want to buy, track prices, and more. For now, though, Honey’s experience is separate from PayPal’s own. And that’s what PayPal wants to change next year.
Schulman said the company’s app will be updated to include Honey’s shopping tools such as wish list features, price monitoring tools, and deals, coupons and rewards. These tools will be part of PayPal’s payment solution. This means that the company will be able to track customers from their initial trading search phase.
PayPal will also provide merchants with “anonymous demand data” to help them drive sales based on how much consumers are involved in the Honey tool.
What’s more, PayPal has set a timetable for Honey’s integration and other updates — next year.
Bill Pay will launch this month and is expected to make a major redesign of the digital wallet experience in the first half of 2021, PayPal said. Most of the new features will be released in the second quarter and second half of this year, with the goal of rolling out most of the tweaks by the end of next year. The changes also include PayPal’s cryptocurrency plan announced at the end of October. The company’s goal is to be the first to support Bitcoin, Ethereum, Bitcoin Cash and Litecoin in the United States.
Schulman told investors on a earnings conference call that PayPal plans to introduce encryption to more users and regions. He noted that the ability to buy, sell and hold cryptocurrencies would be implemented first in the United States and then in international markets and Venmo applications in the first half of next year.
The change would allow PayPal users to shop in cryptocurrencies at the company’s 28 million merchants without the need for additional consolidation. “This solution does not involve any additional integration, volatility risk or increased transaction costs for consumers or merchants, and it will fundamentally enhance the effectiveness of cryptocurrencies,” says Schulman. This is just the beginning of an opportunity, and we are working with regulators to accept the new form of digital currency. “
PayPal has also recently joined the “buy-to-pay” competition with the introduction of a new Pay in 4 installment service that allows consumers to split the money paid by the exchange into four payments. The service was launched in France long before it was launched in the US in late August and then in the UK. It will also be further integrated into the company’s applications over the next few months.
Venmo, which is expected to earn $900 million next year, will see its business expand and will gain encryption, more basic financial instruments and shopping tools, and improvements to the Pay with Venmo checkout experience.
PayPal’s earnings this week are understood to have failed to excite Wall Street investors, causing the company’s share price to fall because it did not provide guidance on its 2021 results. But payPal’s digital wallet app looks set to perform well over the next year.