PayPal’s new CEO Alex Chriss said the company will launch an AI-powered platform this year that will allow merchants to attract new customers based on their past purchase history, using about half a trillion dollars of data Use merchant transactions worldwide. The company is also introducing a one-click payment feature.
This is the first major announcement from Criss, who joined PayPal in September 2023. The new neural network-based products he unveiled are another example of how companies are trying to get investors excited about AI, which has helped U.S. stock markets hit record highs this month. The S&P 500 rose to its fourth all-time high on Wednesday, thanks in part to a rally in technology stocks amid widespread optimism about AI.
Experts hope that Criss, who was previously an executive at software company Intuit, will turn a new page in PayPal’s history and revive the company’s shares, which have fallen more than 22% since January 2023 due to weak profitability. Criss named 2024 “Crossing” for PayPal and promised to significantly increase the company’s profitability.
Merchants will be able to use a separate neural network-based tool called Smart Receipts to recommend personalized products to customers in email receipts and earn cashback. PayPal is rolling out a one-click checkout feature called Fastlane, which in early testing increased checkout speeds by nearly 40%, as well as new features for Venmo business profiles, the company said.
“The results of the innovation… are promising and should improve the experience for consumers and retailers, – said BTIG analyst Andrew Harte. — However, we expect investors will not view this as groundbreaking information, but rather as initiatives they believe the company is already working on.”
“With the data we have and our ability to actually see what people are buying and know what sellers are targeting, AI is a big opportunity for us.”said Criss. PayPal shares fell 4.6% in recent trading as investors await real changes from the company in addition to news from the CEO. Maybe the situation is already changing February 7thwhen PayPal reports fourth quarter results.