PayPal taps Intuit executive for CEO role

(Reuters) – PayPal (NASDAQ:) Holdings said on Monday that Alex Chriss, a top executive at tax-preparation software firm Intuit (NASDAQ:), would replace its longest-serving chief executive officer Dan Schulman on Sept. 27.

The change of guard marks a watershed moment for digital payments giant PayPal, which has been looking to push deeper into the cryptocurrency payments space with the launch of a U.S. dollar stablecoin last week.

Underwhelming margins have been troubling the San Jose, California-based company. Earlier this month, PayPal reported second-quarter adjusted operating margins of 21.4%, missing its forecast of 22%.

Chriss will be taking the helm at a time when cost-cutting has become a priority for PayPal, as it battens down the hatches to prepare for a potential slowdown.

In a post-earnings call, Schulman had said the company was in the final stages of selecting his successor.

Shares were up nearly 1%, at $62.02.

In a separate statement, Intuit named Marianna Tessel the general manager of its Small Business and Self-Employed Group, a role currently held by Chriss.

SCHULMAN’S LEGACY

Schulman was brought into PayPal to steer the firm as a standalone company after it split from e-commerce firm eBay (NASDAQ:) in 2015.

Under him, PayPal became the first major financial technology firm to embrace digital currencies for payments and transfers.

The New Jersey native worked as a truck driver before being accepted into Middlebury College. Prior to his time at PayPal, he had worked at American Express (NYSE:) and AT&T (NYSE:).

At PayPal, Schulman led the company’s foray into the buy now, pay later (BNPL) market, with interest in the sector running high.