Selfbook partners with PayPal to enhance hotel bookings

SAN JOSE, Calif. - Selfbook, a company specializing in hospitality commerce, has announced a partnership with PayPal (PYPL), a prominent player in the Financial Services industry with a market capitalization of over $71 billion, to provide a more efficient payment system for its hotel customers. According to InvestingPro analysis, PayPal’s stock currently appears undervalued, suggesting potential upside for investors interested in the company’s expanding partnerships and market reach. This collaboration is set to introduce PayPal and Venmo as payment options, including PayPal’s Buy Now, Pay Later service, for travelers booking through Selfbook’s platform.

The integration is aimed at streamlining the hotel booking process by utilizing conversational AI through Perplexity, a mutual partner of both Selfbook and PayPal. This technology allows customers to search, book, and pay for their hotel stays within a chat interface, potentially transforming travel booking into a more seamless experience. PayPal’s robust financial performance, with annual revenue reaching $31.89 billion and healthy profit margins above 41%, positions it well for such innovative partnerships.

According to the press release, offering PayPal and Venmo as checkout options can significantly increase conversion rates, with PayPal reporting an average increase of 84% in conversions for online travel payments. Selfbook’s move to PayPal’s Enterprise Payments for direct card processing is expected to offer consumers greater flexibility and choice at checkout.

Khalid Meniri, CEO of Selfbook, emphasized the importance of trust and value in online travel purchases. He stated that the partnership with PayPal aims to simplify the booking process, providing exclusive rates and reducing friction for customers. Alex Chriss, President and CEO of PayPal, echoed this sentiment, highlighting the role of AI in changing how consumers plan and pay for travel.

For hotels, the partnership offers an opportunity to distribute directly to consumers through the PayPal app’s Offers tab, where PayPal users can find exclusive rates from Selfbook’s network of hotels. This approach is designed to enhance hotel profitability by avoiding commission fees, allowing hotels to maintain control over their brand narrative and pricing while tapping into PayPal’s vast consumer base.

This strategic move by Selfbook and PayPal is poised to reshape the hospitality commerce landscape by leveraging AI and offering personalized booking experiences. With analysts setting a consensus price target above current levels and 30 analysts revising earnings estimates upward, the partnership shows promise. For detailed insights into PayPal’s financial health and growth potential, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find the complete Pro Research Report covering what really matters about this fintech leader. The information for this report is based on a press release statement and InvestingPro data.

In other recent news, PayPal Holdings Inc. has launched a new physical credit card, expanding its PayPal Credit service to be used in-store where Mastercard is accepted. Issued by Synchrony Financial, the card will offer a six-month promotional period of no-interest financing for travel-related purchases. This development is part of PayPal’s strategy to enhance its presence in physical stores and provide more flexible payment options. Additionally, PayPal has partnered with Perplexity, an AI-powered answer engine, to enable seamless shopping experiences on the Perplexity Pro platform, allowing users to make purchases using PayPal or Venmo.

Venmo, a subsidiary of PayPal, has also announced an expansion of its commerce capabilities, including enhanced rewards for Venmo Debit Mastercard users. Venmo reported a 20% year-over-year revenue increase in the first quarter, with total payment volume surging by over 50%. Truist Securities has downgraded PayPal’s stock rating to sell, setting a price target of $68, citing concerns about competitive pressures and economic factors affecting growth prospects. The analysts expect PayPal’s gross profit growth to fall behind market expectations, projecting a compound annual growth rate of 2% from 2024 to 2027.

These recent developments reflect PayPal’s continuous efforts to innovate and expand its financial services, while also facing challenges in a competitive market.

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