PayPal and Pinterest – Super Distraction?

What’s behind this deal?

PayPal needs

1. 1. Increase users and platform engagement (MAU)
   2. Grow the merchant value proposition
   3. Get into the START of a consumer shopping experience
   4. Enable a new mobile first shopping experience – focused on small merchants – from beginning to end (like Alipay)

 Pinterest

1. 1. “Inspiration to Action” – They are missing the action beyond a ad click.
   2. Stalled user growth
   3. 50%+ Revenue growth with consistent operating loss.
   4. 454M Users with ARPU of $5.08/User vs PayPal’s $21/User
   5. Ad Growth to Action. Advertising business with solid advertising relationships with CPGs and large retailers. However you don’t click to buy from a CPG. 
   6. Needs platform to complete consumer journey.