PayPal CEO says Covid-19 sped up shift by at least three years
Consumers develop online ‘muscle memory,’ Mastercard CFO says
One statement quoted from the report of Jennifer Surane, “Grocery chains, specialty shops, it just died — our wholesale business died,” Santiago said in an interview. “I was like, this is our time. We have to focus all our business right now on direct-to-consumer and figure out how to drive as much sales and traffic to our website.” Santiago’s Saltopia, which sells infused sea salts with names like “Mustard Been Love” and “Ben There D’Onion That,” spent nine years selling almost exclusively to specialty stores and food distributors. When those businesses shut as stay-at-home orders spread, Santiago wasted no time making the shift.
PayPal Holdings Inc. posted a surge of as much as 30% in the number of newly-active customers in core markets who use the service four times or more in 10 days, the San Jose, California-based company said.
“People are jumping in with both feet, and not just dipping their toes in the water,” PayPal Chief Executive Officer Dan Schulman said in an interview. “It’s not hyperbole that we’ve seen a three- to five- year acceleration. That’s the math.”
Whilst Visa Inc. has seen online spending excluding travel increase by 25% from a year earlier every week since mid-April, twice the growth it was generating before the pandemic.
In-store spending, meanwhile, cratered 50% in early April, Visa said. It improved in recent months as cities around the world started to reopen, but still posted a decline in the high single digits by late June.
“There has been little improvement since,” Visa Chief Financial Officer Vasant Prabhu told investors last week. Read more