PayPal's Acquisition Strategy Sparks Debate
Recently, Airwallex CEO Jack Zhang shared his thoughts on X regarding PayPal's decision to acquire Braintree and Hyperwallet, questioning whether the moves were strategically sound.
Focus on Core Strengths is Crucial
Jack pointed out that PayPal already had one of the strongest two-sided payment networks globally and should have focused on strengthening that foundation, instead of getting pulled into low-margin processing battles.
- PayPal should have concentrated on its dominant network
- Direct competition with Stripe and Adyen wasn't necessary
- Partnerships could have expanded brand reach more effectively
Learning from Klarna's Success
He highlighted how companies like Klarna have grown by integrating and collaborating with other platforms, suggesting PayPal could have followed a similar path rather than pursuing acquisitions.