PayPal Expands into the e-Commerce Solutions Market


Jun. 26 2019, Updated 1:54 p.m. ET

Facebook adopts PayPal’s e-commerce solutions

PayPal (PYPL) has expanded into the e-commerce solutions market as it pursues new growth opportunities outside its traditional comfort zones. Early this month, the company launched what it calls its PayPal Commerce Platform, which it’s promoting as a one-stop shop for the technologies, tools, and services any business would need to launch a digital shopping platform. PayPal says its commerce platform is designed for businesses of any size.

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Facebook (FB) is one of PayPal’s e-commerce solutions customers. Facebook has launched online shopping sections on its flagship social network and Instagram, allowing users to discover and buy items within those platforms. Snap (SNAP), another social media company, has also diversified into e-commerce, tying up with Amazon (AMZN) last year on a service that allows users of its Snapchat app to quickly find items they may want to purchase from Amazon’s online marketplace. Snap has also partnered with Shopify (SHOP) to allow certain Snapchat accounts to set up digital retail shops within the app to sell to their audiences on the platform.

PayPal looking to boost growth

With the commerce solutions platform, PayPal is hoping to make the most of its two-sided network by offering more services beyond payment processing and boosting growth as a result. PayPal’s revenue growth has been slowing in recent quarters. The company’s revenue rose 12% YoY (year-over-year) in the first quarter, slowing from 13% in the fourth quarter of 2018.


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