Macroeconomic Environment Forces Paypal to Trim 7% of Its Global Workforce
In a bid to navigate the challenging macro-economic environment, American payment platform Paypal has revealed plans to trim 7% of its global workforce, approximately 2,000 of its full-time employees.
The company’s recent layoff plan was shared with employees by its president and CEO Dan Schulman, via a memo, stating that the layoff plan was necessitated for Paypal to effectively address the challenging macroeconomic environment, while continuing to invest to meet customers’ needs.
The memo reads in part,
“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macroeconomic environment while continuing to invest to meet our customers’ needs.
“While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do. We must continue to change as our world, our customers, and our competitive landscape evolve.
“Addressing these changes requires us to make hard decisions that will impact some of our colleagues. Today, I’m writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full-time employees, which is about 7% of our total workforce. These reductions will occur over the coming weeks, with some organizations impacted more than others”.
The CEO further disclosed that laid-off employees will be provided with generous packages, also they will be provided with consultations where required to support their transition.
In the company’s third quarter (Q3) report, Paypal reported net revenue of $6.18 billion, adding 13.3 million net new active accounts, to bring its total active accounts to 416 billion.
It also reported a net income of $1.47 billion, Non-GAAP earnings were $1.11 per share, falling short of Wall Street’s estimated earnings of $1.08 per share on revenue of $6.24 billion.
Paypal’s recent layoff announcement marks the latest round of job cuts in the tech industry as tech most firms in recent times, have laid off a significant amount of their workforce in response to the global economic downturn.
Companies such as Microsoft, Spotify, Salesforce, Amazon, Meta, Google, etc, have all laid off a significant percentage of their workforce.
Investors King understands that more than 58,000 workers in U.S.-based tech companies have been laid off in mass job cuts so far in 2023.
Opay And Palmpay Ranked Top as Most Downloaded Fintech Apps Amid Naira Shortage
A new report has shown that Chinese-owned fintech apps Opay and Palmpay are the most downloaded digital banks in Nigeria in 2023, thanks to the cash crunch and failure of traditional banks.
In the report compiled by Similar Web, a web analytics company, both apps became the main alternative to bank apps for money transfers and bill payments during the cash crunch. These apps were reported to be mostly used by vendors and businesses to send and receive money due to the seamless transaction it offers to users.
A large percentage of users disclosed that by using these Fintechs platforms, they do not have to worry about network issues as both apps are always available 24/7. Opay and Palmpay have been lauded for offering relief to Nigerians, especially at a time of unprecedented transaction failure.
It is interesting to note that both Fintechs are licensed by the Central Bank of Nigeria (CBN), insured by the NDIC, and trusted by millions of users. Last week, Opay expressed appreciation to millions of users for increased usage of the platform in the last three months. The payment and financial service company disclosed that its customer base crossed over 30 million registered app users, as well as 500,000 agents and 100,000 merchants.
Investors King understands that the naira redesign by the CBN which led to cash shortage in the country, prompted a huge percentage of the Nigerian population to resort to the use of mobile bank apps for transfers. Unfortunately, the increased reliance on banking apps and USSD platforms negatively impacted bank performance, and put a strain on the already unsteady infrastructure of digital banking. This saw bank transfers often take longer than usual and failed transactions take up to five days or more to be resolved.
This prompted customers who did not hesitate to resort to the use of Fintechs which they revealed was more reliable than bank apps. Meanwhile, the transaction glitches experienced by bank customers have no doubt benefitted several fintech platforms, which had tough times wooing customers before the recent cash crunch that saw them gain a significant amount of users.
These platforms have been able to wrap themselves around the fabric of society and have been massively adopted as reliable alternatives to the epileptic services rendered by conventional banks.
Opay Expresses Appreciation to Millions of Users Over Increased Usage of Its Platform
Nigerian fintech platform Opay has recently expressed appreciation to its millions of users over the increased usage of its platform in the last 3 months.
The payment and financial service company disclosed that its customer base crossed over 30 million registered app users, as well as 500,000 agents and 100,000 merchants.
Expressing appreciation to users and merchants, the company said, “We express our appreciation to over 30 million registered app users 500,000 agents, and 100,000 merchants who use Opay daily to make transactions and ultimately spread OPay’s mission of shared prosperity to all”.
Opay is reported to have gained widespread adoption in the past three months by individuals and merchants, following the failure of several traditional bank apps that prompted a lot of Nigerians to resort to various fintech startups to carry out transactions.
The naira redesign and subsequent cash shortage made digital banking more challenging for Nigerians. Increased reliance on banking apps and USSD platforms negatively impacted bank performance, putting strain on the already unsteady infrastructure of digital banking. This saw bank transfers often take longer than usual and failed transactions take up to five days or more to be resolved.
According to findings by Investors King, it was discovered that among several fintechs used by Nigerians for transactions, Opay is said to be the most widely used due to how seamless it is in receiving and sending funds. On social media, the app has seen a lot of positive PR among Nigerian users.
A large percentage of users disclosed that with Opay, they do not have to worry about network issues as the app is always available 24/7. The app has been lauded for offering relief to Nigerians, especially at a time of unprecedented transaction failure.
Aside from its swift transaction process, Opay also offers users various flexible savings tools to users, in which they get to enjoy up to 18% annual interest and get expert financial management to help them reach their goals faster when they bank with the platform.
It is interesting to note that the fintech startup is licensed by the Central Bank of Nigeria CBN, insured by the NDIC, and trusted by over 18 million users. OPay is a leading mobile money (MMO) and financial technology platform in Nigeria. The mobile payment operation focuses on reaching the massive unbanked population of Nigeria.
It was reported to be the fastest African startup to cross a $1 billion valuation mark and has continued to create the perfect recipe for a thriving fintech sector. OPay went from a popular startup with commercial motorcycles in Lagos, Nigeria, to a financial services company worth $2 billion. The startup’s mission is to make financial services more inclusive with technology.
Central Bank of Nigeria Approves 17 Fintechs as Mobile Money Operators in Nigeria
The Central Bank of Nigeria (CBN) has granted licenses to 17 fintech startups to provide mobile money services in Nigeria.
The recent frustrations experienced by bank customers following the failure of several traditional bank apps as well as USSD codes have spurred a lot of Nigerians to resort to various fintech startups to carry out transactions.
These fintechs no doubt offered relief to Nigerians especially businesses at the time of unprecedented transaction failures by enabling the swift transfer of funds coupled with various juicy offers such as zero transfer charges, bonuses, daily rewards, etc.
Having noticed the large percentage of Nigerians using various fintechs to carry out daily transactions, the Central Bank of Nigeria deemed it fit to authorize fintech operators with existing facilities in order to better regulate them and ensure that citizens putting their hard-earned money in the hands of approved and trusted fintech operators.
The CBN also released a regulatory framework for agent banking operations, which includes several restrictions to mitigate risks in the financial sector.
In a 31-page document, the CBN dedicated section 8.3 to outline prohibited activities for agents. Investors King reports that one of the key restrictions in the guidelines is that agents must not use the purchase option on PoS terminals for cash-in and cash-out transactions.
The CBN also warned agents against transactions where a receipt or acknowledgment cannot be generated. The CBN observed that the agent banking initiative has led to the proliferation of financial service agents across Nigeria.
Check Out The CBN List of Approved Mobile Money Operators in Nigeria
PalmPay is a fintech company that offers digital payment services for consumers and merchants. The fintech startup specializes in digital finance and also provides payment experience for consumers and businesses by making financial services. Their app is their formal financial account, and they build an online and offline payments ecosystem that brings digital products from marketplaces.
Konga Pay is a secure payment method that allows its customers to pay for stuff without using debit cards. It works by Konga’s e-commerce technology integrating with the internet banking portals of major Nigerian banks.
3.) Xpress MTS Limited
Xpress MTS Limited is a subsidiary of Xpress holdings limited, which was granted a mobile money operator license by the CBN last year October. The fintech startup is building an ecosystem to enable people to digitally send and receive money with ease while creating simple financial access for everyone everywhere.
4.) Pagatech Limited
Pagatech Limited operates as a mobile payment company. The Company offers mobile payment services that enable users to send cash, purchase airtime credit, pay bills, and pay retailers. Pagatech serves customers in Nigeria.
5.) Abeg Technologies
Abeg Technologies is a mobile payment application that offers to pay bills, buy airtime, and send and receive money digitally. Abeg fully changed its name to “Pocket by Piggyvest” to emphasize its transition from a money transfer service to a social commerce platform (PocketApp).
6.) Chams Mobile Limited
Chams mobile limited is a fintech startup that is licensed by the Central Bank of Nigeria (CBN) to provide Mobile Money Operations and Agency Banking services. The startup has a special savings wallet KEGOW that allows special savings, debit cards, and thrifts. The wallet is also available for individuals and businesses.
7.) Fortis Mobile Money
Fortis Mobile Money is licensed by the Central Bank of Nigeria (CBN) to provide mobile payment services in Nigeria. It also provides a mobile wallet solution in Nigeria. Users can send/receive money, buy airtime for telecom lines, and make purchases at partner stores such as supermarkets, pharmacies, restaurants, hotels, etc from the wallet. They can pay bills and recharge cable TV subscriptions. Also allows them to book and pay for road transport.
8.) Parkway Projects Limited
Parkway is a leading financial technology provider creating modern banking experiences, proudly developed by Africans and delivered through Africa’s leading banks to businesses and individuals across the continent. Parkway provides simple, intuitive, end-to-end corporate, retail, and transaction banking solutions.
9.) Teasy mobile money
Teasy Mobile Money is a mobile financial platform, offering a virtual wallet to load money by visiting an agent location. Teasy Mobile Money serves in the B2C and B2B space in the FinTech market segments. Teasy Mobile Money’s competitors include Flutterwave, Interswitch, Nuvei, and OPay. Teasy Mobile Money ranks 29th among 50 active competitors.
10.) Nownow Digital Payments
NowNow Digital Payment Systems Ltd provides financial services to Consumers, Agents, and SMES. The company is licensed by the Central Bank of Nigeria as a mobile Solutions Provider. NowNow is on a mission to help Africans get access to financial services.
11.) VTNetwork Limited
VTNetwork, which is doing business as VCASH, is a CBN-licensed payment operator that provides International money transfer services in Nigeria. The startup allows users to transfer money locally and internationally within capabilities in 140 countries.
OPay is licensed by CBN, insured by the NDIC, and trusted by over 18 million users. The startup enables users to accomplish more with their money by providing smart financial services. OPay is a mobile money platform with an extensive range of services that merchants can offer to their clients. The goal of the company is to help unbanked people.
13.) Visual ICT Limited
Visual ICT Limited is a fast-growing Fintech Startup and a Mobile Financial Services Provider licensed by the Central Bank of Nigeria to provide Mobile money services. Visual ICT works with all players in the financial services arena including the Central Bank of Nigeria, Commercial Banks, Telecommunications Operators, Technology Vendors, and Financial Services Applications Developers as well as Prepaid Bill Issuers and Switching Companies.
14.) Mkudi Nigeria Limited
M Kudi Nigeria Limited was established in 2009 for the exclusive purpose of providing Mobile Money Transfer Services to the Nigerian Public. M Kudi allows both unbanked and banked personnel to send money via their mobile device across Nigeria. Since going live, Mkudi has been building its partner network to include banks, telecommunication operators, and a robust, trustworthy Agent Network.
15.) Hedonmark Management Services
Hedonmark is a fintech startup that allows users to make payments from the comfort of their homes or on the go. It is also a solution provider, proffering professional and reliable back-office management solutions to small, medium, and corporate clients.
16.) Funds and Electronic Transfer (FETS) Limited
Funds & Electronic Transfer Solutions Limited is a Central Bank of Nigeria (CBN) licensed mobile money operator. It has an online e-wallet system that offers easy money transfer, bill payment, top-up airtime, and other mobile payment services.
17.) eTranzact International Limited
eTranzact is Africa’s premier e-payments solution provider delivering electronic transaction switching and payment processing solutions across POS, web, mobile, ATMs, and Cards.
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