PayPal could make a social commerce purchase soon, but likely on a larger scale than consumers buying many items: The financial services company is reportedly interested in purchasing the photo-sharing platform Pinterest.
The potential acquisition – first reported by Bloomberg, which cited people who asked not to be identified because the talks are private – would value Pinterest at $ 45 billion. Shares of the social media company have risen more than 19% in the past month, bringing its market capitalization to just over $ 40 billion – although since the start of the year the price of the share fell almost 5%. Pinterest went public in 2019 in an initial public offering (IPO) that valued it at $ 10 billion.
See also: Pinterest IPO prices at $ 19 per share; Raised $ 1.43 billion
What has happened since that IPO, and particularly over the past 18 months, has been an acceleration in social commerce and a shift in Pinterest focus of allowing image sharing on boards. virtual displays to provide a platform that connects shoppers to brands and styles. Earlier this year, executives presented a vision of organic shopping experiences within the social site, with âhigh-quality inventory, catalog downloads and discovery servicesâ through Buy-In Pins created by brands and influencers.
Since then, Pinterest has collaborated with retailers such as The Bay on digital lookbooks, launched new tools for influencers and brands, and extended a host of features to new countries, like its Verified Merchant program and listing tool. digital races. Pinterest has around 464 million monthly active users, although that number has declined quarter over quarter as users spend less time on social media.
CEO Ben silbermann told analysts and investors in April that the number of users shopping on Pinterest had increased by more than 200% in the past year. âWe believe that users of the platformâ¦ are increasingly seeing Pinterest as the destination for shopping,â he said.
Read more: Pinterest to turn published photos into purchases with transparent transactions
Earlier this year, the Financial Times reported that Microsoft had already been in talks to acquire Pinterest, as part of the tech firm’s strategy to grab social platforms with engaged communities that could run alongside its cloud. Microsoft already owns LinkedIn, GitHub, and Minecraft.
Read more: Microsoft reportedly considered the acquisition of $ 51 billion Pinterest
Neither Pinterest nor PayPal returned PYMNTS ‘request for comment.
Build the super app
For PayPal, rumor of the acquisition could bolster its new financial super app, launched last month, with the ability to tap into social commerce channels. Speaking to Karen Webster earlier this year, PayPal President and CEO Dan Schulman said no consumer wants to have dozens of apps on their phone, which requires creating a “super app” that consolidates financial instruments, including reward points and the ability to use different payment methods.
âWe’re a mainstream platform, and it’s on a huge scale – we can add more and more services where people can live a large part of their digital life on this app,â Schulman said. âAnd for merchants who clearly want to be a part of the digitally driven economy, this may be the operating system that enables them to transition to a full and authentic digital omnichannel experience. “
Related news: PayPal’s new awesome app positioned to deliver a next-level connected experience
The new PayPal app provides users with integrated shopping tools that include a loyalty program and exclusive discounts; a single platform for all bill payments and peer-to-peer money transfers; a digital wallet for means of payment and deposits; and a personalized dashboard displaying a customer’s account details, among other features.
PYMNTS ‘connected economy research found that 40% of consumers overall would be interested in integrating payments, purchases, and connections with family and friends into a âsuper portalâ that would allow users establish a single digital identity that could be stored and shared across multiple platforms. And services.
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And according to consumers, as of 2020, PayPal is among the most trusted connected commerce enablers, just behind Amazon. Almost 40% of consumers say they trust the company to offer new connected commerce opportunities, compared to 43% of respondents who trust Amazon; among the least trusted are Facebook, Instagram or a favorite retailer.