FinTech: PayPal Shifting More Applications To Google Cloud As Digital Payments Surge Higher
The move represents an expansion of PayPal’s long-standing partnership with Google Cloud.
PayPal (NASDAQ: PYPL) which has built its hybrid cloud strategy over the years with Google Cloud as a partner, is now moving more and more of its infrastructure workloads to the Google Public cloud to enable the processing of its data on a massive and global scale. (ComputerWeekly.com)
PayPal’s active total customer accounts surged by 24% to 392 million active users as at the end of Q1 2021, as the pandemic triggered a huge surge in digital commerce and online traffic. However, PayPal could onboard the additional transaction volume by adding additional capacity within hours (instead of months previously) through the use of the infrastructure solutions available with Google Cloud (NASDAQ: GOOGL).
Payments providers a lifeline during the pandemic
“E-commerce has spiked during the pandemic, with people using less cash. As a result, payments providers have been in high demand, ” said Derek White, vice president of Global Financial Services, Google Cloud.
“We can only develop fast, build fast, and deploy fast if we have infrastructure that’s as nimble as we are. By leveraging the power of the cloud, our teams can focus on providing the best products, capabilities, and services to our customers,” said Wes Hummel, vice president, Site Reliability and Cloud Engineering, PayPal. “As a part of our strategic partnership, we’re working side-by-side with Google Cloud to scale and secure our infrastructure for the future.”
Flexible and fast computing
According to PayPal, through the use of Google Cloud, it could process 1,000 payments per second at peak times such as Black Friday and Cyber Monday. That speed was up 22% from 2019.
Also, Google Cloud’s computational flexibility allowed PayPal to adjust its requirements for resources to meet with spikes or troughs in payment volumes.
PayPal’s global expansion drive
“The expiration of our operating agreement with eBay has enabled us to launch an extensive partnership with Alibaba,” said PayPal President and CEO Dan Schulman on the recent earnings call. “This global agreement will enable hundreds of millions of consumers outside of China to shop across Alibaba sites in China.”
“PayPal is now available as a payment method on Alibaba’s wholesale marketplace, as well as Ali Express, its global retail marketplace,” he added.
“Our addressable market continues to significantly expand driven by accelerating secular trends and the proactive steps we are taking to become a full commerce and payments platform,” Schulman said. “We believe that the shift in consumer digital behavior will remain essentially unchanged in a post-COVID world.”
Related Story: PayPal Plans To Transform Into A Financial Super App
Latest Alternative Investment News
Alternative Investments/Digital: State Street Digital, A New Division At State Street, To Focus On Crypto
State Street (NYSE: STT), which has $40.3 trillion in assets under custody or administration, said Thursday it is establishing a new digital finance division called State Street Digital. The new…
United Airlines (NASDAQ: UAL) announced its new corporate venture fund, United Airlines Ventures, on Thursday. The fund’s brief is to invest in emerging companies that could reinvent travel and aviation…
The IMF warned Thursday that El Salvador’s move to adopt bitcoin as a legal currency in parallel with the US dollar could have various economic and legal repercussions. El Salvador’s…
Clip, a Mexican digital payments and commerce platform founded in 2012, announced June 10, its raise of $250 million in a round led by the SoftBank Latin America Fund and…