PayPal acquires intelligent predictive platform Jetlore
PayPal (PYPL) is acquiring Jetlore as part of its effort to enhance its marketing solutions for merchants. Through its marketing solutions arm, PayPal provides free marketing tools designed to help merchants increase sales.
PayPal’s marketing tools allow merchants to see how many PayPal users visited and made a purchase on their sites in a given period. Merchants can also discover the average order size of their customers as well as the type of devices customers used to access their sites.
Jetlore is a provider of an artificial intelligence–powered predictive platform for retailers. Retailers use the platform to deliver personalized customer experiences to boost sales and customer loyalty.
Helping merchants make more sales
With Jetlore’s platform and technology, PayPal hopes to help merchants develop meaningful customer relationships. About 20.0 million merchants use PayPal’s services, which include payment processing and access to loans.
On May 17, PayPal announced that it would acquire iZettle to help it expand its in-store payment market and counter the competition from Square (SQ) and Amazon (AMZN). iZettle provides point-of-sale solutions that enable even small merchants to accept card-based payments.
Improving customer retention
Offering a rich mix of merchant services and solutions could help PayPal improve customer retention and drive uptake of its other products, potentially leading to faster revenue growth.
PayPal generated revenues of $3.7 billion in the first quarter, representing an increase of 24.0% YoY (year-over-year). That compared to revenue growth of 6.7% YoY at Western Union (WU) and a revenue decline of 1.6% YoY at MoneyGram (MGI) in the first quarter. Square’s revenues grew 45.0% YoY in the first quarter.