PayPal Unveils Sweeping Business Model Reset Amid Cost-Cutting Push
PayPal's President and Chief Executive Officer Enrique Lores outlined a wide-ranging reset in its business model during the Goldman Sachs Communacopia + Technology Conference. The company is shifting away from branded checkout and toward a broader mix of financial services, consumer products, and value-added services.
The new strategy aims to build on assets that remain hard to copy, including PayPal's global scale, two-sided network, and loyal customer base. Lores stated that the company had become too complex and focused too much on merchants, leaving the consumer side underdeveloped.
PayPal is targeting at least $1.5 billion in gross run-rate cost savings over two to three years. The company has already completed a major reorganization, reducing layers of management and expanding span of control. The changes are expected to begin showing immediate cost savings.
Venmo remains a key growth engine, with revenue above $1.7 billion in 2025 and seven straight quarters of double-digit TPV growth. Management expects more visible progress by the end of 2025 and through 2027 as they increase adoption of value-added services such as payouts and risk-as-a-service.