Home > News content

PayPal could buy Pinterest for $45 billion, turning it into a 'super app'

via:爱范儿     time:2021/10/23 20:01:16     readed:153

Alipay was once called the "PayPal of China," but now it looks more and more like the "PayPal of America."

Payments giant PayPal is planning to buy social media company Pinterest for $45 billion, in what could be its largest acquisition ever. The price is about $70 a share, according to people familiar with the matter. Negotiations are ongoing and may not result in a deal.

Pinterest is an image-sharing social networking site with TOP5 visitors. In April 2020, Pinterest launched a new shopping feature that allows users to access the "Shop" TAB and buy products in stock by clicking a panel TAB, searching for a keyword, or identifying an image. After that, Pinterest called itself "the social network for shopping."

The potential acquisition of Pinterest would give PayPal a boost in "social ecommerce", a market where tech giants such as Facebook are keen to be left behind. Pinterest fits PayPal's expectations.

More importantly, the potential acquisition would serve as a piece of the puzzle that would bring PayPal closer to "super apps."

Paypal has made frequent acquisitions in the past two years, and e-commerce is a key factor. The e-commerce boom has more than doubled PayPal's stock since the pandemic. The e-commerce industry has also brought popularity to e-commerce related infrastructure industries, such as payment, returns and logistics, which is exactly where PayPal has been positioned in the past two years.

In November 2019, PayPal paid $4 billion in cash for Honey Science Corporation, a service that finds the best deals online and has developed plug-ins and software to track prices and offers.

The acquisition signals PayPal's desire to gain a foothold in e-commerce beyond competing with credit cards or Apple Pay on checkout pages.

On August 31, 2020, PayPal launched the "Pay in 4" program, which allows payment in four interest-free installments with a price limit of $30 to $600. In fact, PayPal probably doesn't care if you buy in full or pay in installments, either way it charges merchants similar transaction fees.

PayPal's real goal was to go head-to-head with early entrants like Afterpay and Affirm. Last month, PayPal bought Paidy, a Japanese buy-now pay-later platform, for about $2.7 billion.

In late 2020, PayPal partnered with Visa to launch the Venmo credit card. Venmo, a payments platform built around social features that encourage users to share experiences after each transaction, currently has more than 76 million active accounts, including a large number of millennials. While its payments volume is a small fraction of PayPal's mobile service, it is expected to grow rapidly.

On May 13, PayPal announced the acquisition of Happy Returns, a return solution provider. Happy Returns' advantage is that it has partnered with hundreds of brands and has more than 2,600 offline return outlets, making it easy for consumers to return or exchange online products.

PayPal "buy buy" and many more, including the purchase of encryption monetary hosting company, wholly owned business in China "country FuBao", introduced entity card reader PayPal Zettle and so on.

The list above shows how the payments giant has built a strong moat around its business. All businesses are intrinsically linked -- PayPal Zettle helps merchants build loyalty with PayPal mobile Wallet; Shopping, payment, return, logistics and other business connectivity to achieve a virtuous cycle.

In short, PayPal is at the intersection of digital payment and e-commerce, transforming from a pure payment platform to a diversified e-commerce platform. PayPal CEO Dan & middot; Shulman said earlier this year:

All of these new products and services are effectively transforming PayPal from a checkout platform into a full-fledged super-app, or digital wallet that goes beyond payments, financial services, commerce and shopping.

PayPal also plans to add a host of new services, including high-yield savings accounts, checkcashing and stock investing.

translate engine: Youdao

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments