PayPal at KBW Fintech Payments Conference: Expanding Consumer Strategy

On Thursday, 13 November 2025, PayPal Holdings Inc. (NASDAQ:PYPL) presented its consumer strategy at the KBW Fintech Payments Conference 2025. General Manager Diego Scott outlined PayPal's strategic focus on enhancing consumer engagement through various initiatives. While highlighting growth in transaction volume and consumer engagement, Scott also addressed challenges in the competitive Buy Now, Pay Later (BNPL) market.

Key Takeaways

• PayPal's consumer strategy is built on "pay everywhere," "pay your way," and "driving value for consumers."
• Significant growth in debit card users, with 6 million new first-time users and a 70% year-over-year increase in total payment volume (TPV).
• Venmo is nearing 100 million customers, with a projected $1.7 billion in revenue by year-end.
• PayPal's BNPL service is expected to reach $40 billion in TPV this year.
• Introduction of PayPal World to expand global reach and integration into AI-driven shopping environments.

Financial Results

• Debit Card:

- 6 million new first-time users

- 70% year-over-year growth in TPV

• New Checkout Experience:

- 25% of global transactions are processed through this system

• BNPL:

- Projected $40 billion in TPV for the year

- 30% increase in TPV for checkout customers using BNPL

• Venmo:

- Approaching 100 million customers

- $1.7 billion in expected revenue by year-end

- 20% year-over-year revenue growth

- $1 billion TPV for Pay with Venmo, with 40% growth

- 60% growth in TPV for funds in and direct deposit

• ARPA:

- 2x to 3x increase when using a debit card with checkout

- 5x increase when using BNPL with checkout

- 7x increase when using post-purchase services with checkout

• Branded Experiences:

- Up 8% year-over-year

Operational Updates

• PayPal Everywhere:

- Launched NFC tap-to-pay solution in Germany, integrated with BNPL

- 6 million customers using NFC in Germany

- Offline users transact 6x more at checkout and have 3x higher ARPA

• Frictionless Checkout:

- New rewards program in the U.K.

- Biometric authentication improving conversion rates by 2-5 percentage points

• Smart Wallet:

- Integration of financial products into a centralized wallet

- Launch of PayPal World to include regional wallets

• Venmo:

- "Stash" rewards program offers cashback for debit card usage

- Partnership with Built for rent payments and expense splitting

• Partnerships:

- Collaborations with Big Ten and Big Twelve conferences for college outreach

Future Outlook

• Venmo:

- Targeting $2 billion in revenue by 2027

• Agentic Commerce:

- Aiming to be the first wallet on AI platforms like OpenAI

• PayPal World:

- Launch in Q1 to allow global shopping for Venmo customers

• BNPL:

- Expanding to Canada

- Launching cashback offers of 5%-20% for the holiday season

• App Redesign:

- New app to feature BNPL merchant offers prominently

• Focus on Debit and BNPL:

- Leveraging the shift from credit cards to debit and BNPL solutions

Q&A Highlights

• Stablecoin Use Cases:

- Interest from consumers and merchants in using stablecoins, especially in regions with unstable currencies

- Rewards proposition for crypto users offering 4% rewards for holding funds in crypto with PayPal

For more detailed insights, refer to the full transcript below.

Full transcript - KBW Fintech Payments Conference 2025:

Unidentified speaker, Interviewer: Next, I want to welcome Diego Scott. He is the General Manager of PayPal's Consumer Group. Diego oversees marketing, communications, and product design across several lines of business at PayPal. He joined PayPal in 2023 after serving as CMO at Verizon. He also spent 15 years at American Express, leading a variety of different functions there. Thank you, Diego, for making the trip over here. You know, at your Investor Day earlier this year, you laid out three pillars of consumer strategy, including pay everywhere, pay your way, and driving value for consumers. Maybe start with PayPal everywhere. PayPal's very strong penetration online. Maybe give us an overview of what you're looking to do in terms of expanding into omnichannel with PayPal everywhere, which can help drive usage of the overall platform.

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Thank you for having me here. It's great to be with all of you. Just to give you a context, the consumer business per se and PayPal is pretty new. We formed this group in 2023 with Alex Chriss, became the CEO. Under this group, we have PayPal, obviously the brand that you guys know, and Venmo as well. We manage the two brands separate but together under the group. Yeah, like you mentioned, when we had our Investor Day earlier in the year, I talked about strategy that had those three pillars. In order for us to be the smartest way to pay and really bring back the consumer, we wanted to have the pay everywhere portion of it. We wanted to also make sure that people can pay the way they want.

That is all the payment flexibility that comes with it. We will talk about that later, I hope. The third piece is loyalty and give people value, a reason to really use PayPal. The pay everywhere piece is an important one because if you think about PayPal and think about yourselves as consumers, you think about PayPal as, oh, it is great to use online. Traditionally, it has been used like that. When you think about the consumer, they are thinking about PayPal in this box, which is for those types of purchases. That means that if you want to shop offline, you need something else. That is a barrier that when we say to the consumer, now you can use us online and offline, you only can think about PayPal.

It becomes a new frontier for us to be playing a different space in the mind of the consumer. I'll tell you, we completely repositioned our debit card proposition with 5% cashback and completely embedded in the experience. The results have been incredible. We are now 6 million new FTUs on debit card, 70% growth on TPV on debit card year over year, which is incredible. I don't know, guys, if you know, but we launched our first NFC tap-to-pay offline solution in Germany early in the year as well, the first in the world for us. That's funny because it comes not only with that, but also with the first solution for BNPL in the country. In Germany, it's a country that still you want to have a deferred purchase.

You need to go to the eighth floor of the department store, get somebody to sign a pay lift or something, and you get your loan. Now you can do it right there in the app when you select the TV that you want to buy. We're already almost 6 million customers in NFC in Germany. We are very, very excited. When you hear me say it all the time, and I'm sure I'm going to repeat this a lot today, what we see is when a customer uses one of our products, we see the impact on our checkout business. What you see in this case is for customers that are using us offline, six times, six X the number of transactions that they do at checkout, and three times the ARPA in the value of those customers.

You see how the flywheel starts to work also when we talk about offline.

Unidentified speaker, Interviewer: Perfect. Frictionless checkout is another area. Upgrading merchants to the latest checkout experience has been a focus point for you guys. Where are we in that progression in the U.S. and outside?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: I appreciate that question because it gives me the opportunity to frame how we think about this, which is both what needs to happen on the merchant side and what needs to happen on the consumer. Of course, I'm very focused on that piece as well. If we don't have the two pieces working together, the whole puzzle doesn't work. When we look at the merchant side, we're already at 25% of all of our global transactions in the new experience, which is very, very exciting. Every month, we are making good progress. That's great because we see the impact of that on the business. On the consumer side, you got to put the whole puzzle together, which includes, number one, we're making a big push on biometrics in order to eliminate more friction from that experience.

When you compare or when you put together the new checkout experience with biometrics, we see a 2-5 percentage points of improvement on conversion, which is really exciting. On top of that, we're launching a big new rewards program. We actually launched it in the U.K. yesterday. And it's serendipitous that happened there, but we can talk about that later. BNPL is another component that we added on top of that. Then you're going to see us making our app, a completely redesigned and rethought app that becomes central to the experience to drive back to checkout with things like BNPL and transactions. When you put all together, we are expecting to see also an acceleration of the new experience having an impact on the business overall.

Unidentified speaker, Interviewer: Do you have any stats on what percentage are on the latest integration and what percentage of branded checkout TPV is now coming from the newer integrations?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Twenty-five percent of our global transactions are already coming from the new integrations.

Unidentified speaker, Interviewer: Got it. Perfect. One of the other initiatives that you talked about is the new customer wallet experience to make it seamless for consumers to transact and manage their payments. Many consumers obviously have multiple wallets. What will make PayPal the wallet experience? What will make PayPal the wallet experience compelling for a consumer and make it their default wallet?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: First, what I always start is something that has always been a strength for PayPal, but maybe in the past we did not capitalize it as such, which is we have the largest suite of products all under one roof. When you think about checkout, when you think about BNPL, when you think about debit cards, when you think about rewards, when you think about merchant rewards, when you think about crypto, I mean, the list goes on and on. We never really thought about them in the past at how all these products come together, both in terms of the experience for the consumer and the way we think about the business. The way you think about the consumer is like we are making, we are changing and evolving our experience on the wallet for all of these things to come together in the wallet.

We call it the smart wallet because it's going to do a lot of more things for you versus what the wallet does today. Also, thinking about the point about what it does to our business, which is, and I know that we all focus on checkout, checkout, checkout, checkout, the point about monetization of our base through the usage of more products and how all of those products work together to drive monetization and also go back to checkout is the way we look at the business. There are some examples of that in terms of what this means. I mean, when you look at, for example, 15% of our checkout customers also use P2P and they do it right there in the app. 25% of the funds that our customers sell through crypto get reinvested or reused on checkout. BNPL is another great example.

30% increase in TPV on checkout customers that use BNPL. Subscriptions, we just launched a new, completely new Subscriptions Hub so then customers can turn on and off their subscriptions right there in the app and you see higher engagement. You see how all of these things are now thought together and are accelerating the flywheel. What is an incredible new differentiation is I'm sure you probably heard about PayPal World, which we announced a few months ago. Interestingly enough, today we actually got the first transaction. That means that PayPal is becoming a network of wallets.

That means all these regional wallets from UPI, WeChat, and the likes of the world, now they are going to expand their reach to the global markets through PayPal, which means that we go from 500 million customers to 2 billion plus customers all over the world that are going to be on the PayPal network. When you put all of that together, we are not only very confident about our differentiation for the customer, but what it means longer term for the growth of our business.

Unidentified speaker, Interviewer: Got it. Could you talk about how the new wallet experience actually translates to higher usage, greater share of checkout, stronger retention? What metrics should we pay attention to to see if the strategy is working?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: I see it in a very simple way. Everything that we do in terms of how all of our products come together generates higher engagement with increases ARPA. I know that sometimes people say, is that it? It is not that it. It is that when the foundations of the business are simple and clear, then you see the metrics and you see the progress. To give you an evidence on that, if you think about the ARPA that we get for a customer that only does checkout, if that customer then uses our debit card, you get 2X or 3X. When that customer uses BNPL, you get 5X. When that customer comes back and uses all of our post-purchase services, we get 7X the ARPA. That is a fact.

The focus that I have and the team have on the business is that when you look at the penetration of checkout in our business, yeah, it's obviously 90%. When you look at debit card, BNPL, you get 5-10%. It's very low. That's obviously both what drives us, but also the huge opportunity that we have on executing the strategy. What it gives me confidence on where we are is that the strategy that we've been executing for the last 18 months is driving higher penetration on the segments of multi-use product and also ARPA accretion.

Unidentified speaker, Interviewer: Buy now, pay later, you talked about it. It's getting to be quite competitive in the United States. There's a number of different players sort of even entering the space at this point in time. How is PayPal leveraging its brand to maintain differentiation and take wallet share?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Yeah. Listen, I'm very, very excited about where we are with BNPL for a couple of reasons. First, based on what I said to you before, 30% increase in TPV per customer for a checkout customer that starts using BNPL or a customer that uses BNPL increases 30% TPV on checkout. Second, we're going to make $40 billion this year on TPV on BNPL, which is a significant number from where we come from. We start with something that I think sometimes people take for granted, which is what our competitors are fighting for distribution. Our BNPL product is already accepted almost everywhere that we have checkout. The product is right there. Now we're starting to then take it to the next level. Number one is geographic expansion. You see, we launched this week in Canada and we're growing very healthily all over the world.

Number two, we are going to attach rewards to it. We just launched here in the U.S. for the holiday 5%-20% cashback on BNPL, zero fee, zero interest, which is really compelling for consumers. The other piece is taking it upstream in our experience. Right now, which I think is an opportunity for us to grow even further because right now it's behind the checkout button. If we take it upstream and we're going to do more and more and more of that in the next few months, the opportunity continues to increase. The last piece is what I mentioned to you about the app. Our app is going to evolve. You're going to see a completely new app next year in which BNPL merchant offers are going to be at the center of this new app.

We're going to close the circle overall in terms of how BNPL makes sense for us. Listen, we have some work to do on the perception because a lot of people know PayPal for the checkout experience, but not necessarily for BNPL. You see even the marketing that we have in the market right now with the Will Ferrell campaign continuation is focused on BNPL to try to drive that perception. Listen, I always look at things customer back. I know that you guys are obviously looking at the consumer and the state of the consumer today. We are in a time in that the consumers are looking for how they can make more from their money, how they can stretch that dollar. Especially with the younger generations, and you know this as well, people are not loving credit cards.

High fees, high rates, getting into debt. BNPL and debit, two things that are really connected and are core to our experience, are resonating with the consumer because we are making sure that they're targeting that segment of people, especially the younger generations, that they don't want to get into debt, but they want the payment flexibility. That gets me excited because then you see the brand and the business resonating, especially with the younger generation.

Unidentified speaker, Interviewer: Perfect. So adding value to consumers is so they keep coming back was a third pillar that you talked about, right, at the investor day. So what are the initiatives on that front that you've launched? What's worked? What hasn't?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: We are at a great moment. I'm very bullish on the loyalty side because as I looked into the company as a whole in the past, the two-sided network benefit that we have, we haven't really leveraged to create value back to the consumer. Yes, in pockets, but not in a holistic way. The way we think about loyalty, both for PayPal and Venmo, is coming from this perspective, which is I firmly believe, and you're all consumers, so you all know how you do it. Every time that we speak with consumers, they tell us, "I use different FIs, different things to maximize my rewards. I use this for this. I use this for my miles. I use this for my groceries." The reality is I'm confused and I'm overwhelmed because it's a lot of work.

For PayPal, our goal has been to create the program of all programs. A program that, number one, on the purchasing, on the shopping piece, can allow us to say, "You can use PayPal for everything. You're going to get rewards using your FIs, and you can actually double dip if you have your Amex or whatever. If you have our own FIs, you're going to get 10 times the points and the rewards. You get cashback that you can reinvest or you can use for checkout. The more you do with us, the more products you attach with us." See, I'm talking about spending and checkout and also talking about monetization and product attachment. The more products you get, the higher you go on the rewards tiers will give you more benefits, more access to experience, and even more value to your points.

We call it PayPal Plus. We launched the first iteration of that yesterday in the U.K. I encourage you guys to go and take a look, especially in a market that we want to take back, which is the U.K. You have on our debit and credit cards, you have 10 times the points that you get with checkout, but then we offer the opportunity for people to double dip. We are even going to get consumers to be able to attach rewards programs from merchants. For example, you can attach your Starbucks rewards program, so then you get points on us and on them on the same transaction. With the smart wallet that I was referring to before, we are even going to be able to recommend to you for every transaction which FI to use to maximize your rewards.

I want this program to be not only what gets you engaged with checkout, not only what gets you engaged with more products from PayPal because you will get points for everything that you do with PayPal, but for you to say, "I don't need any other rewards programs because PayPal's got it." Just launched, a lot more to do, but very excited about that. On Venmo, we also launched it's almost like we planned all these launches around this.

Unidentified speaker, Interviewer: This conference.

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: This conference, which we didn't, but it's a good thing. For Venmo, we launched Stash, Venmo Stash on Monday, I believe it was on Monday. For Venmo, again, we're talking about a younger consumer, 18 to 29, affluent, urban, they want their rewards. What we wanted to do for Venmo, and this is if you follow our strategy, central to it is we want to drive monetization. Basically, it's a cashback-based rewards in which you get 1% when you start with the debit card. You get 3% when you start bringing funds in, and you get 5% cashback when you attach your direct deposit. You can earn cashback on the merchants that you want.

There are bundles that you can pick because one of the things that we heard consumers tell us is, "What's the point of getting cashback on the merchants that I don't want? I want the merchants that I want, and I want to get more." I'm very excited about this because strategically, it's right at the center of how we're going to drive the consumer relationship with Venmo, which is more products and ultimately more monetization.

Unidentified speaker, Interviewer: These sound really exciting. How do you make sure that it makes money for PayPal? Because you have to drive the monetization. What are the KPIs that you're looking for? How do you measure you get the return?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: First of all, let me share how I think about this. In the absence of the strategic platforms to drive loyalty, because the vision is that everything that we do to create incentives to drive product attachment or incentives to drive checkout or BNPL are going to be connected to this program, which in the way we're looking at the financials, it's a better way of spending, a better way of getting ROI on the investment versus doing one-off incentives or more about the line marketing to try to drive volumes. We have to create that ecosystem that PayPal never really had. Obviously, we're looking at ROI between 12 and 24 months for all of our investments.

The way you guys need to look at it is like we're going to make more strategic investments with higher ROI potential because overall, it's a better use of our money, all more connected, all working harder for us versus these one-off things.

Unidentified speaker, Interviewer: Got it. For Venmo, revenues for Venmo have been growing at 20%, and that's a goal that you shared at the investor day. Also, the goal was to grow the revenue to more than $2 billion by 2027. Could you just talk about some of the initiatives and strategies that you're employing and sort of what's resonating with consumers and merchants?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Yeah. Listen, I'm very, very excited about where we are with Venmo, especially because the first thing that I heard from many of you, not you, but many of you, when we came was, "You guys don't know what to do with Venmo. Venmo can never be monetized. This will never work. You have no idea what you guys are doing." You can see a lot of things. Some of the things were more using expletives as well. It was beyond that. I always felt that Venmo is this thing that we have a really affluent base, now close to 100 million customers. What it needed was a vision for what we wanted Venmo to be. We want Venmo to be the money movement app for the next generation. The next generation means 18 to 29, affluent, urban, educated, and with disposable income.

When we talk about money movement, we do not just talk about banking per se, but we talk about all of the ways of creating the opportunities for you to move money with a social experience at the center, which is very unique to Venmo. Getting to basics, which is let's do the things that we need to do and a strategy that it started with. We need to be the best at P2P. Two, we need to get you to bring more funds in. Three, we need you to use those funds to actually buy things, right? So monetize that. Fourth, we want to have commerce experiences in the app. Fourth, we want a rewards experience that connects all of those elements. The results are there. Let me talk a little bit about some of them.

Pay with Venmo, we just crossed our billion mark on TPV, the highest ever, growing, yeah, 40% year over year. Debit, we crossed our million FTUs, new FTUs, first-time users per month just in September. You see that we are doing things like going back to colleges and college campuses with the deal that we have done with Big 10 and Big 12, for example. The machine is accelerating on Pay with Venmo and Debit, and that is driving an increase in ARPA as well. Funds in, and I do not think anybody would have thought about this even internally, but funds in, which includes funds in and direct deposit, is the TPV is up 60% year over year. People want to bring their money into Venmo and spend it. In-app experiences, we just announced Built, I think it is like two weeks ago, I believe.

A lot of announcements with experience in terms of paying your rent, which is core to what this audience wants to do, and then split it. We are really trying to stay very, very focused on the customer. You see that the numbers are showing it, 20% revenue growth year over year. We are going to end this year at $1.7 billion, where we said $2 billion by 2027. You do the math. I am very, very excited. For the ones that say, "How you compare with our competitors," I would say two things. One, we have a great opportunity for monetization that we know that we still are very low, like I said, 5-10% penetration of Debit Card and Pay with Venmo. Imagine if we keep driving that, the opportunity is enormous. We also have a more affluent base.

That is something that maybe does not get talked about enough, but it is something that we are having very present because we have a slightly different strategy than our competitors. That is something that, as you think about us, you should definitely consider.

Unidentified speaker, Interviewer: When we think about the different initiatives that you mentioned, where are you seeing the strongest traction?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: I think I would say that the Omni, starting with Omni, our Omni strategy is central to our strategy, and we're seeing great traction there. BNPL, which creates checkout activity and engagement, has also tremendous traction. Venmo has tremendous traction. I know that you guys look a lot at the checkout numbers specifically, but what we call branded experiences, which include the virtual cycle created by Pay with Venmo, Omni, etc., is up 8% year over year. I do want us to, internally and externally, to look at the business in its whole, right? Because our business now is much more diversified than just the checkout business, but everything reinforces checkout. That's what we're focused on. That's what we'll continue to emphasize and double down. I think that we're just getting started.

It's been a lot of great work from the teams, but I do think that we're just getting started.

Unidentified speaker, Interviewer: I mean, it seems like branded experiences and branded checkouts are really critical and important to the story. I mean, and it sounds like you're having some success. How deep are you scratching the surface in terms of getting the penetration of branded checkout in Venmo?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Listen, like I said before, we're doing everything that we need to do on this new experience to create adoption that then will add to checkout. We are deploying the new experience, including the new checkout experience, including biometrics and the other elements like rewards and app that I mentioned, and get better every month. We need to keep chipping at that. You know that there are obviously merchant integrations that need to happen, product adoption that needs to happen. Listen, the teams are very, very, very focused. We will continue to make progress, getting better every month, and that's what we're here to do.

Unidentified speaker, Interviewer: It seems like there should be a collision between sort of Venmo and PayPal coming together in some ways. Maybe just talk about how you see Venmo's role evolving within the PayPal broader ecosystem.

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Yes and no. I tell you kind of the thesis and where we see the intersection happening. First of all, we're talking about two of the most powerful brands in financial services in the world, different target audiences. Venmo, as I said, is 18 to 29, a much younger audience. PayPal, older, 30s, 40s, families, etc., more global, of course, as well. There is opportunity for the two brands to really fulfill their potential. That's what we're focusing on. Now, on the back end, obviously, we are integrating everything that we can, right? Marketing efforts, risk platforms, tech stacks, CRM platforms. We gain as much efficiency as possible on the back end. Also, and you see this already, where there are opportunities for the two brands to create more interoperability, we want to do that.

As part of PayPal World, starting in Q1, Venmo customers are going to be able to shop anywhere in the world through the PayPal button, through PayPal World. That was one of the first things that we looked at when we were thinking about interoperability earlier on. It is a great example of the way we're thinking about, well, there are opportunities that make sense. We would do that. Maybe rewards and loyalty platform is another area that in the future we will look at it. I feel very bullish on the potential of the two brands to fulfill their potential before even thinking about further integrations.

Unidentified speaker, Interviewer: Just like in terms of the demographics, right? They're quite different. Maybe you could just kind of dig into those, like how you're sort of catering to each of those demographics within the Venmo and PayPal platforms.

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Yeah. Let's start with Venmo. With Venmo, we are talking about this 18- to 30-year-old audience that starts young, but I'm not saying that we don't have older customers as well, but that's the core of the audience. What is interesting is that these are either affluent or aspiring affluent customers, very urban in their definition. They're in a trajectory of growing income in terms of how they want to see themselves and manage their money. A lot of them are young, but they're also the customers of the future. Everything that we do and the Built partnership, for example, is a great example. What do you guys want? Oh, I need to get my rent. What do you use Venmo for? Oh, I would like to split my rent with my roommates.

I want to split the purchases and the services for the rent. Let's go and be very, very focused on that audience. For PayPal, one of the things that really fascinated me when I joined, and you mentioned part of my career has been in American Express and around marketing for Vogue magazine. I was CMO of J.Crew. I have done a lot of things in my life, but always with a strong sense of what this brand is and how it appeals to. You would all agree that PayPal was a little bit diffused. Strong brand. I mean, when I joined, people asked me like, how do you feel two years after joining? I feel more bullish now than when I joined.

With PayPal, it's like no matter where you go in the world and you ask consumers, first of all, do you know PayPal? They say yes. The second thing is, why? What stands out for you about PayPal? The trust, the confidence, the security. That's an incredible ask. I mean, you guys know how hard it is to get, especially in the fintech space, any brand to be recognized for anything. Again, a lot of our competitors have done a really interesting job, a good job. PayPal was a little bit diffused. Everything that we've done since we started is to refocus the product, refocus the brand on, again, a younger audience, still 30 to 40. They already have disposable income. They spend a lot online. They are more global. Cross-border is a huge component of our business, and it will continue to be.

That's why we're doing things like PayPal World. We're being more aggressive in terms of our marketing and the way we position the brand. There's no reason why this brand, PayPal, cannot continue to be reinvented in the eyes of the consumers to be relevant. Every step that we're taking, including the marketing that we're doing, is to bring this brand back to be confident and to occupy a space in the mind of the consumer that is going to be compelling for them. We've got to be relevant, and that's what we're trying to do.

Unidentified speaker, Interviewer: I for one agree. I like the incentivization. It's a great strategy. I guess when we think about other stuff that you have in the pipeline, you don't have to tell me what specifically, but just what's the development pipeline? How should we think about new initiatives coming into play and how it might drive growth in the future?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: What you should know about the way we are approaching the business is we have to win today, and we also need to play for the future. The announcements that you've seen on Agentic, for example, and the focus of the company on Agentic, we're going to be the first wallet to be able to shop in OpenAI, as an example, but we already have a pipeline with Perplexity and xAI, etc. We want to be the way consumers shop in the Agentic world. That is a bet that we're making. That is work that is going on right now, and we're going to lead because that's what we do. That is going to take some time. That means we also need to win today. Everything that I talked about and what we're doing is about winning today.

Listen, in our world, like you all know, it's really easy to start working on 70 different things, all trying to kind of see what sticks. We're very focused on, in the future, Agentic is going to play a big, big role. We need to make sure that that is there. Two, we know that consumers are escaping a little bit from credit. So debit and BNPL, and even a debit card that has payment flexibility attached to it is where the consumer is going. We want to be playing very hard in there. I think the future is a future of interoperability of wallets around the world. That's why PayPal World is such an important bet for the company that, again, I want to reinforce this point. It takes us from 500 million customers to 2 billion-plus customers all over the world.

Again, it's something that is going to take time to build, but we're very bullish. Those three elements are where the future is going and where we're going to be going. Everything that I shared to you about today is what is going to help us win quarter over quarter. That's what we're focusing on.

Unidentified speaker, Interviewer: As you can imagine, Agentic Commerce is something we've been talking quite a bit in this conference. It may or may not be your area of expertise in terms of what you're doing at PayPal, but as you think about it from your seat, how do you see it working? Because it's so early, right? Do you see consumers allowing bots to make their payment decisions? Or their shopping decisions, one, but then their payment decisions. What kind of role does PayPal play in that? You hinted a little bit about it, but maybe just elaborate a little bit on that.

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: Trying to predict how fast, I get this question a lot, but trying to predict how fast the curve of the option is going to be. Some people say it's going to be 24 months. Some people say it's going to be 10 years. The answer is going to be somewhere in the middle. Who knows? The point is the consumer is going to decide at some point how they want to do this. What I can tell you is this, that in order for you to allow bots or this type of Agentic services to shop for you, buy for you, you're going to need to trust that. Every piece of research that we've seen and that we've done, especially with the younger consumer, less so interestingly with maybe some of the older consumers, is the trust piece comes number one. Comes number one.

What I can tell you is that part of the reason why we're very bullish in terms of the role of PayPal is that we have the trust. We have the confidence from the consumer about PayPal standing for that. The way I see it is the role that PayPal played in the beginning of the internet age, when remember what it was? One of the reasons why PayPal was created is because how do you shop online when there wasn't an existence? The trust that we created there is the same trust that we're going to put into place right now so we can win on the Agentic space.

Unidentified speaker, Interviewer: Perfect. We have a few minutes left. I figured I'll see if the audience has any questions. Any questions from the audience?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: There's a question right there.

Unidentified speaker, Interviewer: Could you get the mic to him? Sorry. Excuse me.

Hi, thank you, Aspen. What use cases are you seeing in stablecoin? And how much do you anticipate that playing in the payment space in the future?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: What we're seeing is interest both on the consumers and on the merchant side to be paid, unpaid with stablecoin, especially in the context of the world that is getting smaller and smaller. For us, the fact that we have a global business and this could be a way for consumers to both save and shop with the same currency all over the world is something that we're starting to see some interest around that. It's nascent. I would say probably in countries where the stability of their currency versus the dollar is something that is not there. I'm from Argentina, so I know that very well. The use of stablecoins is something that is resonating a lot with consumers. I tell you, we're doing a lot on this space.

We also just launched our rewards proposition for crypto, which is like we give you 4% when you keep your money with us on crypto. It is having very good reception overall. Like I said, it is also creating a great effect on the flywheel for checkout for those customers.

Unidentified speaker, Interviewer: Any other questions?

Diego Scott, General Manager of PayPal's Consumer Group, PayPal: All right. Thank you. Thank you very much. It was a lot of fun. I appreciate your time. Thank you.

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