Its stock slumped 25% after it also reported that profits fell short of Wall Street analysts’ expectations and that it anticipated slower growth in 2022 than previously expected.
Over the past two years PayPal added 120 million new customers (it now has 426 million total accounts). In 2021, the company leaned into incentivized customer acquisition tactics to a much greater extent than before, according to Forbes. For example, PayPal ran marketing campaigns that offered to deposit USD 5 or USD 10 in a new customer’s account if he or she signed up for PayPal or Venmo.
The company is changing its customer acquisition strategy to move away from incentive programs and focus on sustainable growth and driving engagement or getting current customers to use PayPal’s apps more often.
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