(CTN News) – In an attempt to resuscitate the payments giant, PayPal announced on Thursday that it will launchartificial intelligence-driven products and an easy one-click checkout option.
This is the first major announcement made by Alex Chriss since he joined PayPal in September, and it is another example of how companies are trying to capitalize on investor enthusiasm for artificial intelligence, which has contributed to the rise of U.S. stock markets this month.
PayPal’s stock has decreased more than 22% from January last year due to margins that have underwhelmed investors, which Chriss previously held a senior executive position at software giant Intuit.
The CEO of PayPal has described 2024 as a “transition year” and pledged to grow revenues beyond transactions alone.
Chriss told Reuters: “I think AI is a huge opportunity for us because of the data we have and our ability to see what people have purchased and what merchants are trying to target.”
This year, PayPal will launch a platform that will utilize artificial intelligence to allow merchants to reach new customers based on their prior shopping history, utilizing the roughly half a trillion dollars in merchant transactions it has processed worldwide.
Moreover, merchants will be able to use a separate AI-powered tool called a “smart receipt,” which will recommend personalized items to shoppers along with a cashback incentive in the email receipts that they receive.
Fastlane, a new one-click checkout feature introduced by PayPal, has in early testing accelerated checkout speeds by nearly 40%, as well as new features for Venmo business profiles.
An increase in optimism regarding artificial intelligence was responsible for the S&P 500 index closing at its fourth consecutive record high on Wednesday as a result of an increase in optimism. The fourth quarter earnings of PayPal will be announced on February 7.