PayPal has reportedly planned to launch PayPal Open, a new brand that will unify several of its payment services, including Braintree, Zettle, Hyperwallet, and Chargehound, reported CNBC.
The transition of PayPal Open will begin this week, with a phased approach starting in April.
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PayPal Open will offer more than B2B payment processing, providing businesses, developers, and partners with integrated financial services and AI-powered insights through a single connection.
Merchants will get access to fraud protection, flexible payment options, support for global transactions in 140 currencies, and lending solutions.
Despite this, Venmo, a peer-to-peer payment app with over 90 million active US users, will remain independent and stand-alone entity of PayPal.
PayPal EVP, General Manager, Large Enterprise & Merchant Platforms Group Frank Keller stated: “People say, ‘Venmo me,’ It’s such a distinct consumer brand.”
The decision to create PayPal Open followed by market research, internal discussions, and strategic adjustments, including debates on the potential focus on Braintree.
Keller said: “I’ve been working, actually for two years now, on this launch, in terms of how do we establish a PayPal as a B2B business.”
The initiative is part of a broader strategy led by PayPal CEO Alex Chriss, who has been at the helm since September 2023.
According to the CNBC report, Chriss contributed more in improving transaction margins and monetising acquisitions such as Braintree, which processed nearly $600bn in total payment volume last year.
The company’s checkout business is claimed to be the profitable segment, accounting for 30% of PayPal’s total payment volume.
Keller noted that businesses “don’t have to rip and replace their Braintree” or other integrations, but instead gain access to all of PayPal’s offerings.
“We want to be an open platform where businesses, developers and partners can build upon our solutions,” he added.
PayPal reported a net income of $1.1bn in Q4 2024, down from $1.4bn in the year-ago quarter. For the full year, its net income was $4.1bn, a 2% fall from 2023.
