Jayni Shah

1/ Over the last few years, most of the largest Fintech M&A has happened in legacy payments processing. World Pay + FIS ($35B); First Data + Fiserv ($22B); TSYS + Global Payments ($21B); World Pay + Vantiv ($10B) (Cc: @Qatalystgroup)

2/ That will change as PAYMENTS and COMMERCE continue to converge … eg: payments co’s like @Square buying merchant-enabling tools such as @Weebly, and merchants like @Uber and @Amazon investing in their own payments initiatives

3/ This trend is perhaps most evident @PayPal, that benefits from the virtuous flywheel of commerce + payments . PP monetizes merchants by processing their payments. So PP is incentivized to (1) bring more consumers to those merchants (2) convert them into paying customers

4/ @Honey helps them do just that. Being part of the consumer’s product/ deal discovery journey early will improve conversion metrics (aka getting customers to pay w/ PP) This bolsters PP’s merchant value prop as they compete with cards, Apple Pay etc at checkout

5/ Worth mentioning that @Honey also brings millennial + GenZ shoppers to PP’s merchants, a demographic merchants desperately want (and need!)

6/ @Honey will likely become PP’s defacto consumer loyalty/ rewards platform (across all properties including Venmo) These programs are expensive and incredibly complex to create from scratch

7/ PayPal will continue to play in multiple Fintech-adjacent markets: P2P, B2C, B2B payments as well as online and offline commerce. And they clearly have big aspirations for growth :

8/ “We believe that we operate in an addressable market that is $110 trillion. And our long-term aspiration as a company is to have somewhere between 10% and 15% market share of that.” @Dan_Schulman, CEO of PP