One sure sign the internet has matured is when original players get a second chance to tap into the market’s appetite for digital properties.
Following its split from eBay, PayPal shares jumped as much as 11 percent in its highly anticipated return to the Nasdaq stock market on Monday, valuing the company at about $52 billion. In fact, parent eBay, which acquired PayPal more than 10 years ago for $1.5 billion, now is valued at only about $32 billion.
PayPal is looking to leverage mobile technology to compete with Western Union and other money-transfer companies and to offer affordable financial services widely. It is expected to build partnerships with e-commerce rivals and to try to seize market share from startups such as Square and Apple, which unveiled its own mobile-payments service last year.
“It’s clear that the potential for mobile technology to transform money extends beyond commerce,” Dan Schulman, CEO of PayPal, told Reuters. “The vast majority of the world’s 7 billion people lack access to even basic financial services.”
PayPal was founded in the last 1990s by Elon Musk, CEO of Tesla and Space X, and venture capitalist Peter Thiel, as well as others. It prospered under eBay but lately has been seen as being held back by eBay’s woes with more competition from Google, and other difficulties.
“We are focused on leveraging our strengths to drive long-term growth for our company and shareholders,” Schulman said in a press release. “PayPal is unique. We have a singular focus on digital payments, deep commitment to customer service, a drive for innovation and a technology-agnostic platform that creates value for our consumers and merchants online, in apps, and ingcreasinlyg in stores.
PayPal is listed anew under the same stock symbol it used before being acquired by eBay: PYPL.