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PayPal Carves Out Venmo as Part of Three-Unit Overhaul

The move signals a push for faster growth with a possible sale kept open.

Overview

  • PayPal said Wednesday it will run Venmo as its own segment and reorganize the rest of the company into two additional units.
  • The other units will combine the PayPal-branded consumer and merchant business and a payments services arm that includes Braintree and crypto operations.
  • The carve-out makes Venmo’s results easier to see and could ease a sale process if the company chooses to explore one, according to CNBC.
  • PayPal named Frank Keller to lead Checkout Solutions & PayPal, tapped Alexis Sowa to run Consumer Financial Services & Venmo on an interim basis, and installed Jeff Pomeroy as interim head of Payment Services & Crypto.
  • The company confirmed the exits of Diego Scotti and Michelle Gill, shares rose about 2% to 3% after the reports, and more details are slated for the May 5 earnings call.