PayPal to launch AI-based products under new CEO

In a bid to reinvigorate growth and boost its sagging share price, payments giant PayPal is venturing into the world of artificial intelligence (AI) with a suite of new products. This marks the first major strategic move under Alex Chriss, who took the helm as CEO in September 2023.

Chriss, a veteran of the financial software industry, sees AI as a key unlock to PayPal's immense potential. "The data we possess, combined with the power of AI, offers a game-changing opportunity," he told Reuters.

"It's not just about facilitating transactions anymore; it's about harnessing insights to deliver personalized experiences and drive deeper engagement."

The centerpiece of PayPal's AI arsenal is a platform that helps merchants target potential customers based on their past shopping habits and broader consumer trends gleaned from the company's vast transaction data.

This empowers merchants to reach relevant audiences with laser-focused marketing campaigns, potentially boosting conversion rates and customer loyalty.

Another AI-powered tool dubbed "smart receipts" personalizes shoppers' email receipts by suggesting additional items they might be interested in, along with the added incentive of cashback rewards.

This not only incentivizes further purchases but also strengthens the connection between merchants and consumers.

"We're entering a new era of intelligent payments," Chriss declared. "By leveraging AI, we aim to become an indispensable partner for both merchants and consumers, creating a seamless and rewarding experience for everyone."

The market's immediate reaction to the announcement was muted, with PayPal's share price dipping slightly. However, analysts remain cautiously optimistic.

"This is a bold move by Chriss," remarked financial expert Sarah Jones. "While the impact on the share price might be gradual, the long-term potential of AI integration is undeniable. PayPal's success will hinge on its ability to execute these AI initiatives effectively and deliver tangible value to its users."

With Chriss at the helm and AI as its new weapon, PayPal is charting a course towards revitalizing its business and reclaiming its position as a leader in the ever-evolving payments landscape.

Only time will tell if this strategic shift will bear fruit, but one thing is certain: the fight for dominance in the digital wallet arena is only just heating up.