PayPal Holdings Inc. has announced the appointment of Alex Chriss as its new CEO, replacing the outgoing chief executive, Dan Schulman. Chriss, a seasoned fintech executive with a focus on small businesses, will assume his new role on September 27. The move comes as PayPal grapples with a slowdown in growth and a decline in its stock value after experiencing a surge in activity during the pandemic.
Having previously led Intuit Inc.'s QuickBooks business, Chriss brings a wealth of experience in the fintech industry. Known for his expertise in small business solutions, he oversaw Intuit's $12 billion acquisition of Mailchimp, a move that expanded Intuit's offerings for online customer engagement.
Chriss inherits a challenged but salvageable situation at PayPal, according to analysts. The company has experienced a series of senior-level departures in recent years, and Schulman's retirement further adds to the management churn. However, PayPal's board sees Chriss as the right person to lead the company's next phase of growth and expansion.
PayPal's stock, which reached its peak at over $300 per share in July 2021, has plummeted since then and currently values the company at less than $70 billion. In an effort to cut costs, Schulman initiated a massive cost-cutting initiative earlier this year, which included layoffs for around 2,000 employees.
Schulman, who will remain on the board as a director, has been refocusing PayPal on its core payment checkout experience following an unsuccessful attempt to become a "super app." The company now aims to encourage existing users to utilize PayPal more frequently rather than focusing on acquiring new users. It has also ventured into new payment methods, including the recent introduction of a stablecoin, a first for a major financial company.
The appointment of Chriss concludes a substantial search process by PayPal's board to find a suitable replacement for Schulman. With Chriss's background in small business technology, the board believes he is the right leader to guide PayPal into its next stage of growth and success.