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Founded Year

2002

About CashPass

CashPass is a company that focuses on financial management in the financial services industry. The company offers a prepaid Visa card that provides individuals and businesses with a simplified way to manage their finances. It was founded in 2002 and is based in Burnsville, Minnesota.

Headquarters Location

181 S River Ridge Cir

Burnsville, Minnesota, 55337,

United States

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Latest CashPass News

Why PayPal’s new features didn’t match the anticipated hype

Jan 30, 2024

This iframe contains the logic required to handle Ajax powered Gravity Forms. In the run-up to the scheduled release of the final quarter results for 2023, PayPal last week unveiled upgrades to its services, including AI-driven personalizations and checkout experiences for both merchants and consumers. It’s something PayPal has been working on for a while. “The biggest surprise that I didn’t realize before coming in [to this job] is probably around the data. I think we’re just scratching the surface of the opportunity there,” said newly appointed PayPal CEO, Alex Chriss while answering questions following the third-quarter financial results in November – his first earnings season and analyst encounter after stepping up to the highest position. Then, Chriss emphasized the scope of data across PayPal’s two-sided network, as he believes it provides a competitive edge and allows the firm to do things differently. Personalized branded checkout is another strong area to leverage and drive conversion for merchants, according to him. He also reiterated the importance of SMBs at the time and how it will be a priority for PayPal moving ahead. Fast forward to this year and Chriss has taken tangible steps toward materializing the plans he unveiled during the last earnings conference in November. However, the firm’s trajectory resulting from these changes remains uncertain. A closer look 2024 will see PayPal introducing six new features nationwide, as announced by the firm during its Innovation Day last week. Enhanced Venmo business profiles: Acknowledging the challenges of social media visibility and reviews for small businesses, Venmo is now enhancing business profiles. This evolution includes subscribing buttons, rankings, and promotional features to boost visibility and drive traffic. Consumers can discover top-ranked businesses endorsed by their connections in the local community. Personalized offers platform: PayPal is creating a personalized offers platform for merchants, tailoring promotions based on customers’ actual internet purchases, down to specific product details. Merchants will pay for the service that will analyze global data and customize offers for consumers to ensure users receive relevant offers, with clear privacy controls to choose data sharing preferences. Personalized cashback offers: To help consumers navigate inflation and find better deals, PayPal is introducing CashPass. This feature provides personalized cashback offers from leading US brands. Users can tap on an offer, shop, and check out with PayPal. CashPass uses AI to tailor offers based on shopping behavior to introduce new cashback opportunities regularly. Launching in March with partners like Best Buy, eBay, and Walmart, CashPass users can stack rewards, putting cash back into a PayPal Savings account to earn even more. Faster checkout: PayPal has accelerated its regular checkout for faster transactions. The redesigned experience now integrates Passkey support and employs AI to improve speed and intelligence over time. Speeding up guest checkouts: PayPal is introducing Fastlane — a one-click guest checkout for merchants on its platform. Shoppers can complete purchases by saving their information with Fastlane, requiring one tap without the need for usernames, passwords, or credit card details every time. Incentivizing customers: Shopping with PayPal will now offer Smart Receipts. Utilizing AI-driven recommendations and informed by shopper behavior data, PayPal claims these receipts can predict the next potential purchase from a specific merchant. Merchants can capitalize on this by including personalized recommendations and cashback reward offers directly on the receipt. A hit or missed opportunity: Perspectives differ Chriss assumed his role at PayPal in September 2023, at a critical time when investors and analysts anticipated him to weave together PayPal’s narrative as the company found itself falling behind its rivals as he worked to intensify efforts to reverse the stock’s nearly 20% year-to-date decline. The recent series of upgrades is a response to the pressure on Chriss feeling the pressure to deliver positive outcomes in the closely-monitored initial full quarter of his leadership. His promise to ‘ shock the world ’ received a lukewarm response, generating less excitement than anticipated and evoking a range of reactions. PayPal stock fell nearly 4% on Thursday following the payments firm’s announcement. Expressing skepticism, one user commented , “Always a good sign when a poorly performing business jumps on the latest big thing to prop up their share price without addressing the failures within their existing business model.” Meanwhile, another user questioned the impact with a simple “That’s it?” This sentiment was widely shared among analysts and industry experts, too, who found nothing unthought-of in the announcement. According to them, the highlighted features contribute to a sense of déjà vu as they are already commonplace in the products of competing companies, therefore lacking novelty. “The outcomes of the innovations are promising and should improve consumer and merchant experiences,” said Andrew Harte, an analyst at BTIG. “That said, we do not think investors will view any of them as groundbreaking new information, but instead initiatives they would have expected the company to already be working on.” Critics argue that the disappointment stems from overpromising, under-delivering, and loud marketing that overshadowed the services. Mizuho analyst Dan Dolev acknowledged the positive move toward using AI for checkout improvement and enhancing consumer offers. However, he flashed a warning, suggesting that an intensified focus on Branded Checkout could lead to potential difficulties down the road. While PayPal is the most-used BNPL brand, Apple Pay Later has been gaining market share rather quickly, sniping out a portion of PayPal customers — a growing and significant concern of investors over the recent quarters. According to Dolev, these revamped measures are unlikely to solve the existing issues including “share loss to Apple Pay in PYPL’s core Branded Checkout business, which represents 80% of gross profit, age demographic problem – as younger consumers value convenient checkout experiences like Apple Pay and competition in P2P from Zelle.” Another aspect that garners attention is the strategic timing of this event, occurring nearly two weeks before PayPal’s scheduled earnings report. The timing bears a resemblance to Citi’s recent financial disclosure note , which was also released a couple of days before the bank reported its last earnings. The strategy insinuated a lack of confidence regarding Citi’s final quarter results, all while making efforts to uphold investor sentiment. This raises the question of whether a similar scenario could unfold with PayPal as well. PayPal saw improved earnings in the third quarter of 2023 compared to the previous one in which narrow operating margins and a reduction in active user numbers added to the firm’s broader woes. Although a decline in active users persisted in the third quarter, the firm’s recent move of enabling its customers to add their eligible PayPal and Venmo credit or debit cards to Apple Wallet may have been of help in the fourth quarter. For the upcoming Q4 2023 earnings result scheduled on February 7, analysts expect earnings per share of $1.36 on revenue of $7.87 billion.

CashPass Frequently Asked Questions (FAQ)

  • When was CashPass founded?

    CashPass was founded in 2002.

  • Where is CashPass's headquarters?

    CashPass's headquarters is located at 181 S River Ridge Cir, Burnsville.

  • Who are CashPass's competitors?

    Competitors of CashPass include Cashee, Fair Square Financial, Rev Worldwide, Visa, Bancacao and 7 more.

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