PayPal would slot well in a different wallet

NEW YORK, Aug 15 (Reuters Breakingviews) - After 25 years of muscling in on mega-finance, PayPal (PYPL.O) should benefit from outside help. A six-month CEO search led to Alex Chriss at Intuit (INTU.O) to replace retiring Dan Schulman. The $70 billion company’s struggles, and the incoming chief’s credentials, set the stage for a transaction of some sort.

PayPal has become the most trusted place, beyond banks, for consumers to store their money, according to research firm Euromonitor. Earlier this month, however, its quarterly results disappointed investors again, sending its stock down another 12% and bringing the decline to 80% since a July 2021 peak. Chriss ought to be able to help in one trouble spot, small-business loans, considering his responsibility for such customers at $140 billion Intuit. He also spearheaded its $12 billion purchase of marketing service Mailchimp in 2021, which could augur a deal.

Old-school lenders are probably watching closely. Payments fit nicely with their existing designs on dominating consumers’ spending options. Few could afford such a big acquisition, however, and those that can face obstacles. JPMorgan (JPM.N) has partnered with PayPal already, but as the biggest U.S. bank, would have a tough job convincing watchdogs to bless a deal. Citigroup (C.N) is still on regulatory probation for past slipups.